Question 5 of 5 $113,400 Income Statement For the Year Ended December 31, 2020 Revenue Service Revenue 103,000 Dividend Revenue 10,400 Operating Expenses Supplies Expense 2,100 Depreciation Expense 20,300 Advertising Expense 1,200 Meals and Entertainment Expense 4,100 Rent Expense 9,500 Litigation Expense 7,500 Salaries and Wages Expense 41,200 Warranty Expense 3,000 Operating Income before income tax 91,700 $21,700 Additional Information 1. 2. 3. 4. 5. Oriole is privately owned and uses ASPE.The dividend revenue represents dividends received from taxable Canadian corporations. Oriole's income tax rate is 30%. On January 1, 2020, Oriole had a future tax liability of $3,045 related to its property, plant, and equipment (PPE). During the year warranty expense of $3,900 was accrued. One half of this amount was paid during 2020. This is the first year Oriole offers warranties on services rendered. Property, plant, and equipment was purchased for $101,500 on January 1, 2016. These assets are being depreciated on a straight-line basis over five years with no residual value and have a 20% CCA rate. This PPE is considered eligible equipment" for purposes of the Accelerated Investment Incentive (the "AIN (under the All, instead of using the half-year rule, companies are allowed a first-year deduction using 1.5 times the standard CCA rate). On July 1, Oriole was sued by a competitor. Although the lawsuit has not been finalized, management believes that it is likely that a settlement will be reached in the next year for $7.500. On November 30, $4,800 cash was paid in advance for four months of advertising, starting Dec 1 6. 7. Calculate taxable income and taxes payable for 2020. Taxable income $ Taxes Payable $ e Textbook and Media List of Accounts Prepare the journal entries to record 2020 income taxes (current and future. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit (To record current tax expense.) Question 5 of 5 $113,400 Income Statement For the Year Ended December 31, 2020 Revenue Service Revenue 103,000 Dividend Revenue 10,400 Operating Expenses Supplies Expense 2,100 Depreciation Expense 20,300 Advertising Expense 1,200 Meals and Entertainment Expense 4,100 Rent Expense 9,500 Litigation Expense 7,500 Salaries and Wages Expense 41,200 Warranty Expense 3,000 Operating Income before income tax 91,700 $21,700 Additional Information 1. 2. 3. 4. 5. Oriole is privately owned and uses ASPE.The dividend revenue represents dividends received from taxable Canadian corporations. Oriole's income tax rate is 30%. On January 1, 2020, Oriole had a future tax liability of $3,045 related to its property, plant, and equipment (PPE). During the year warranty expense of $3,900 was accrued. One half of this amount was paid during 2020. This is the first year Oriole offers warranties on services rendered. Property, plant, and equipment was purchased for $101,500 on January 1, 2016. These assets are being depreciated on a straight-line basis over five years with no residual value and have a 20% CCA rate. This PPE is considered eligible equipment" for purposes of the Accelerated Investment Incentive (the "AIN (under the All, instead of using the half-year rule, companies are allowed a first-year deduction using 1.5 times the standard CCA rate). On July 1, Oriole was sued by a competitor. Although the lawsuit has not been finalized, management believes that it is likely that a settlement will be reached in the next year for $7.500. On November 30, $4,800 cash was paid in advance for four months of advertising, starting Dec 1 6. 7. Calculate taxable income and taxes payable for 2020. Taxable income $ Taxes Payable $ e Textbook and Media List of Accounts Prepare the journal entries to record 2020 income taxes (current and future. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit (To record current tax expense.)