In 2020, Pina Ltd., which follows IFRS, reported accounting income of $1,053,000 and the 2020 tax rate was 20%. Pina had two timing differences for tax purposes: CCA on the companys tax return was $520,500. Depreciation expense on the financial statements was $315,000. These amounts relate to assets that were acquired on January 1, 2020, for $2,082,000. Accrued warranty expense for financial statement purposes was $134,400 (accrued expenses are not deductible for tax purposes). This is the first year Pina offers warranties. Both of these timing differences will fully reverse over the next four years, as follows:

Year		Depreciation Difference		Warranty Expense		Rate
2021		$73,000		$19,000		20%
2022		57,500		28,500		20%
2023		44,500		38,100		18%
2024		30,500		48,800		18%
		$205,500		$134,400

1. Calculate income taxes payable for 2020.

2. Prepare the journal entries to record income taxes for 2020

a) Dr. current expense _______ Cr. Income tax payable _________

b) Dr. deferred tax expense _________ Cr. deferred tax liability __________

3. 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

Dr. deferred tax expense ________ Cr. deferred tax liability _________