Engagement Inc. purchased equipment for $312,000 on January 1, 2018, its first day of operations. For book purposes, the equipment will be depreciated using the straight-line method over six years with no residual value. The CCA rate for this asset is 40% (for simplicity ignore the 1/2 year rule). Pretax accounting income for the 3 years is:

	2018	2019	2020
Pretax accounting income	$200,000	$200,000	$160,000

In 2019 Engagement spent $8,000 on golf dues for its best customers. Otherwise, the only difference between pretax accounting income and taxable income is due to the use of CCA for tax purposes and straight-line depreciation for accounting purposes.

Instructions Prepare the adjusting journal entries to record income taxes for all three years, assuming that the enacted income tax rate is 25% for 2018 and 2019, but in 2020, Parliament lowers the income tax rate to 20% effective as at the beginning of 2020.