In 2020, Sarasota Ltd., which follows IFRS, reported accounting income of $1,155,000 and the 2020 tax rate was 20%. Sarasota had two timing differences for tax purposes: CCA on the companys tax return was $487,000. Depreciation expense on the financial statements was $287,500. These amounts relate to assets that were acquired on January 1, 2020, for $1,948,000. Accrued warranty expense for financial statement purposes was $138,800 (accrued expenses are not deductible for tax purposes). This is the first year Sarasota offers warranties. Both of these timing differences will fully reverse over the next four years, as follows:

Year		Depreciation Difference		Warranty Expense		Rate
2021		$67,000		$20,600		20%
2022		56,500		28,600		20%
2023		44,500		40,000		18%
2024		31,500		49,600		18%
		$199,500		$138,800

Calculate income taxes payable for 2020.

Income taxes payable

$Enter your answer in accordance to the question statement

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 O for the amounts.) Account Titles and Explanation Debit Credit (To record current tax expense.) (To record deferred tax expense.) 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 O for the amounts.) Account Titles and Explanation Debit Credit 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 O for the amounts.) Account Titles and Explanation Debit Credit (To record current tax expense.) (To record deferred tax expense.) 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 O for the amounts.) Account Titles and Explanation Debit Credit