For the year ended December 31, 2020, Pina Ltd. reported income before income taxes of $211,800. Prior to 2020 taxable income and accounting income was the same each year. In 2020, Pina Ltd. paid $114,000 for advertising; of this amount, $38,000 was expensed in 2020. The remaining $76,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2021-2022 period. The full $114,000 was deductible for tax purposes in 2020. The company paid $31,800 in 2020 for membership in a local golf club (which was not deductible for tax purposes). In 2020 Pina Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2020 were $25,300, of which $19,700 was actual repairs for 2020 and the remaining $5,600 was estimated repairs to be completed in 2021. Meal and entertainment expenses totalled $40,800 in 2020, only half of which were deductible for income tax purposes. Depreciation expense for 2020 was $102,600. Capital Cost Allowance (CCA) claimed for the year was $134,100. Depreciation and CCA relate to an asset that was purchased on January 1, 2020 for $513,000. Pina was subject to a 25% income tax rate for 2020. Pina follows IFRS. Calculate taxable income and taxes payable for 2020.

Taxable income $ 162100 Income taxes payable $ 40525 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 O for the amounts.) Debit Credit Account Titles and Explanation Current Tax Expense 52950 52950 Income Tax Payable (To record current tax expense.) Deferred Tax Expense 12425 Deferred Tax Liability 12425 (To record deferred tax expense.)