Part II The records for 123 Inc. show the following data for the 2020 calendar year 1 Accounting income before taxes is $250,000. The income tax rate is 25% and is likely to remain at this rate for the foreseeable future 2. Machinery was acquired in January 2020 for $300,000. 123 Inc. uses straight-line depreciation over a ten-year life (no residual value). For tax purposes, 123 Inc. uses CCA at 15% for 2020 (ignore the half-year rule) 3. Dividends received from a Canadian corporation were $4,000. These dividends are not taxable. 4. Instalment sales recorded on the books was $200,000 Collections of instalment receivables was $150,000. Amounts are taxable when collected 5. Golf club dues were $3,850. These are not tax deductible 6. Warranty repair costs paid during 2020 were $13,000 The estimated recorded warranty liability related to 2020 sales was $19,600 Costs are deductible for tax purposes when paid Required: a) Prepare a schedule (starting with accounting income) to calculate taxable income b) Prepare the required adjusting journal entries to record income taxes for 2020. Date Account Debit Credit