For the year ended December 31, 2020,SandhillLtd. reported income before income taxes of $102,000.

In 2020,SandhillLtd. paid $60,000for rent; of this amount, $20,000was expensed in 2020. The remaining $40,000was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2021-2022 period. The full $60,000was deductible for tax purposes in 2020.

The company paid $74,000in 2020 for membership in a local golf club (which was not deductible for tax purposes).

In 2020SandhillLtd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2020 were $48,000, of which $32,000was actual repairs for 2020 and the remaining $16,000was estimated repairs to be completed in 2021.

Meal and entertainment expenses totalled $26,000in 2020, only half of which were deductible for income tax purposes.

Depreciation expense for 2020 was $180,000. Capital Cost Allowance (CCA) claimed for the year was $209,000.

Sandhillwas subject to a20% income tax rate for 2020.Sandhillfollows IFRS. At January 1, 2020,SandhillLtd. had no balances in deferred tax accounts.

Calculate taxable income and taxes payable for 2020.

Taxable income, 2020$Taxes payable, 2020$

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 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

(To record currenFor the year ended December 31, 2020,SandhillLtd. reported income before income taxes of $102,000.

In 2020,SandhillLtd. paid $60,000for rent; of this amount, $20,000was expensed in 2020. The remaining $40,000was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2021-2022 period. The full $60,000was deductible for tax purposes in 2020.

The company paid $74,000in 2020 for membership in a local golf club (which was not deductible for tax purposes).

In 2020SandhillLtd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2020 were $48,000, of which $32,000was actual repairs for 2020 and the remaining $16,000was estimated repairs to be completed in 2021.

Meal and entertainment expenses totalled $26,000in 2020, only half of which were deductible for income tax purposes.

Depreciation expense for 2020 was $180,000. Capital Cost Allowance (CCA) claimed for the year was $209,000.

Sandhillwas subject to a20% income tax rate for 2020.Sandhillfollows IFRS. At January 1, 2020,SandhillLtd. had no balances in deferred tax accounts.

Calculate taxable income and taxes payable for 2020.

Taxable income, 2020$Taxes payable, 2020$

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 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

For the year ended December 31, 2020,SandhillLtd. reported income before income taxes of $102,000.

In 2020,SandhillLtd. paid $60,000for rent; of this amount, $20,000was expensed in 2020. The remaining $40,000was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2021-2022 period. The full $60,000was deductible for tax purposes in 2020.

The company paid $74,000in 2020 for membership in a local golf club (which was not deductible for tax purposes).

In 2020SandhillLtd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2020 were $48,000, of which $32,000was actual repairs for 2020 and the remaining $16,000was estimated repairs to be completed in 2021.

Meal and entertainment expenses totalled $26,000in 2020, only half of which were deductible for income tax purposes.

Depreciation expense for 2020 was $180,000. Capital Cost Allowance (CCA) claimed for the year was $209,000.

Sandhillwas subject to a20% income tax rate for 2020.Sandhillfollows IFRS. At January 1, 2020,SandhillLtd. had no balances in deferred tax accounts.

Calculate taxable income and taxes payable for 2020.

Prepare the journal entries to record 2020 income taxes (current and deferred)

(To record current tax expense.)

t tax expense.)