Jewell Polymers uses straight-line depreciation for financial reporting purposes for equipment costing R800 000 and with an expected useful life of four years and no residual value. For tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax Accounting income the first year the equipment was used was R900 000, which includes interest revenue of R20 000 from municipal bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 40%.

Prepare the journal entry to record income taxes.