E. Musk and J. Bezos start a company manufacturing an electric self-driving baby stroller, to be sold exclusively on Amazon. 2020 was the company's first year of operations. Net income (pre-tax) was modest at $350,000. Depreciation expense was $50,000. Capital cost allowance (CCA) was $650,000. Warranty expenses were recorded (but won't be paid until 2021) in the amount of $30,000, and golf dues were paid in the amount of $200,000. The difference in the depreciation and CCA amounts above is expected to reverse equally over the next three years The enacted tax rate is 25% and is expected to increase to 30% in 2022. Required a) Calculate taxable income. b) Calculate, if applicable, the balance in the deferred tax asset or deferred tax liability account at December 31, 2020. c) Prepare the required journal entries to record income taxes for 2020. E. Musk and J. Bezos start a company manufacturing an electric self-driving baby stroller, to be sold exclusively on Amazon. 2020 was the company's first year of operations. Net income (pre-tax) was modest at $350,000. Depreciation expense was $50,000. Capital cost allowance (CCA) was $650,000. Warranty expenses were recorded (but won't be paid until 2021) in the amount of $30,000, and golf dues were paid in the amount of $200,000. The difference in the depreciation and CCA amounts above is expected to reverse equally over the next three years The enacted tax rate is 25% and is expected to increase to 30% in 2022. Required a) Calculate taxable income. b) Calculate, if applicable, the balance in the deferred tax asset or deferred tax liability account at December 31, 2020. c) Prepare the required journal entries to record income taxes for 2020