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For the year ended December 31, 2020, Martinez Ltd. reported income before income taxes of $90,000 In 2020, Martinez Ltd. paid $51,000 for rent of

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For the year ended December 31, 2020, Martinez Ltd. reported income before income taxes of $90,000 In 2020, Martinez Ltd. paid $51,000 for rent of this amount, $17.000 was expensed in 2020. The remaining 534,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2021 2022 period. The full $$1,000 was deductible for tax purposes in 2020. The company paid $75,000 in 2020 for membership in a local golf club (which was not deductible for tax purposes). In 2020 Martinez Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2020 were $40,000, of which $30,000 was actual repairs for 2020 and the remaining $10,000 was estimated repairs to be completed in 2021. Meal and entertainment expenses totalled $22.000 in 2020, only half of which were deductible for income tax purposes. Depreciation expense for 2020 was $160,000. Capital Cost Allowance (CCA) claimed for the year was $185,000 Martinez was subject to a 20% income tax rate for 2020. Martinez follows IFRS. At January 1, 2020, Martinez Ltd. had no balances in deferred tax accounts, Calculate taxable income and taxes payable for 2020. $ Taxable income, 2020 Taxes payable, 2020 $ eTextbook and Media List of Accounts Prepare the journal entries to record 2020 income taxes (current and deferred). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Prepare the journal entries to record 2020 income taxes (current and deferred). (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Debit Credit Account Titles and Explanation (To record current tax expense.) (To record deferred tax expense.)

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