In 2020, Martinez Ltd., which follows IFRS, reported accounting income of $1,166,000 and the 2020 tax rate was 20%. Martinez had two timing differences for tax purposes: CCA on the companys tax return was $498,000. Depreciation expense on the financial statements was $288,000. These amounts relate to assets that were acquired on January 1, 2020, for $1,992,000. Accrued warranty expense for financial statement purposes was $138,000 (accrued expenses are not deductible for tax purposes). This is the first year Martinez offers warranties. Both of these timing differences will fully reverse over the next four years, as follows:

Year		Depreciation Difference		Warranty Expense		Rate
2021		$73,500		$21,400		20%
2022		52,500		29,500		20%
2023		50,000		38,400		18%
2024		34,000		48,700		18%
		$210,000		$138,000

Calculate income taxes payable for 2020.

Income taxes payable

$Enter your answer in accordance to the question statement

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Prepare the journal entries to record income taxes for 2020. (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 current tax expense.)
(To record deferred tax expense.)

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In 2021 the government announced a further tax rate reduction will be effective for the 2024 taxation year. The new rate will be 15%. Prepare the journal entry to adjust deferred taxes for the reduced rate. (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