In 2020,MarigoldLtd., which follows IFRS, reported accounting income of $324,000and the 2020 tax rate was18%.Marigoldhad two timing differences for tax purposes:

CCA on the company's tax return was $357,400. Depreciation expense on the financial statements was $230,000.

Accrued warranty expense for financial statement purposes was $83,200(accrued expenses are not deductible for tax purposes). This is the first yearMarigoldoffers warranties.

Both of these timing differences will fully reverse over the next four years, as follows:

YearDepreciation DifferenceWarranty ExpenseRate

2021$42,600 $10,200 17%

202236,700 15,100 17%

2023 26,100 25,800 15%

2024 22,000 32,100 15%

total $127,400 $83,200

1.Calculate income taxes payable for 2020.

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

3.In 2021 the government announced a further tax rate reduction will be effective for the 2024 taxation year. The new rate will be13%. Prepare the journal entry to adjust deferred taxes for the reduced rate.