Jelly Co., a publicly accountable company, has prepared the following

information to calculate its income tax provision for the year ended December 31, 2020:

Depreciation expense $540,000

Capital cost allowance $690,000

Warranty expense $130,000

Warranty costs incurred $155,000

Jelly entered into an equipment lease on January 2, 2020. The first lease payment of

$135,000 was made on that date. The interest on the right-of-use asset was $24,000,

and the depreciation expense was $75,000. (The depreciation expense on the

right-of-use asset is included in the $540,000 depreciation expense above.).

Jelly's deferred income tax liability at the beginning of 2020 was based on the

following:

a difference between the carrying value ($7,600,000) and undepreciated capital cost

of property, plant, and equipment ($4,300,000)

a warranty liability of $320,000

The tax rate for the year ended December 31, 2019, was 25%. The tax rate for the year

ended December 31, 2020, was 26% (enacted on October 31, 2020), and the tax rate

for the year ended December 31, 2021, is 30% (enacted on December 16, 2020).

Required:

Calculate Jellys deferred income tax expense for the year ended

December 31, 2020.