During 2016, Magneto Magnets Inc. income statement reported income of $300,000 before tax. The companys income tax return filed with the Canada Revenue Agency showed taxable income of $250,000. During 2016 Magneto Magnets was subject to an income tax rate of 25%. The company uses ASPE.

Requirements:

1. Journalize Magneto Magnets income taxes for 2016.

2. How much income tax did Magneto Magnets owe at the end of 2016?

3. At the beginning of 2016, Magneto Magnets balance of Future Income Tax Liability was $40,000. How much Future Income Tax Liability did Magneto Magnets report on its balance sheet at December 31, 2016?