In Year 1of its operations, Reliable Company has revenues of $600,000 and expenses of $400,000. Of the expenses, $70,000 represents a warranty on a company product. However, the company only paid $30,000 as a result of this warranty. The remainder is expected to be paid in a future year in which company officials believe there is a 60% chance that the company will have taxable income to be reduced by this warranty cost. The relevant tax rate is 30% for Year 1 and 32% for periods after that. What is the total amount of income tax expense to be recognized in Year 1?

Required:

(i) Calculate the taxes payable for the year 2020

(ii) Calculate the deferred tax liability for the year 2020

(iii) Calculate the total tax expense for 2020

(iv) Prepare the journal entry to record the tax expense for 2020

(v) Prepare the income statement presentation of the tax amounts

The tax rate is 30% for all years.