follows IFRS, is in the process of preparing its financial statements for its second year of operations ending December $31$st$,2023.$ Pertinent information follows:

Accounting income before tax is $$13,000,000.$

Depreciation on property, plant and equipment is $ $1,200,000$ and CCA claimed is $$2,000,000.$

The company sells a product with a $2-$year warranty. The estimated warranty cost on an Accrual basis is $$4,000,000$ and spent $$1,800,000$ on a Cash Basis.

The accounting income before tax included a $$500,000$ fine.

On January $1$st$,2023,$ the company received three years advance rent income $($for $2023$ through $2025)$ of $ $750,000,$ which was recorded as unearned revenue for book purposes, but which must be reported as $2023$ revenue for income tax purposes.

The tax rate for years prior to $2023$ was $40\mathrm{.}0\%$; for $2023$ the tax rate is $50\mathrm{.}0\%.$

The balance $($credit$)$ in the Future Income Tax Liability account as of December $31$st$,2022,$ was $$275,000.$

Required:

Prepare the compound journal entry to record the Income Tax for $2023.$

Prepare the $2023$ income statement, beginning with income before income taxes.

Please Use Format Below to Answer the Required Entries:

Description$/$Account

Debit

Credit