Rehal Services has provided the following information for use in determining its income tax obligations related to the year ended December 31, 2020.

Rehal Services Income Statement For the Year Ended December 31, 2020
Revenue
Service Revenue		$830,000
Dividend Revenue		42,000
Life Insurance Claim Received		102,500
Total Revenue				$974,500
Operating Expenses
Office Expenses		18,050
Depreciation Expense		96,000
Advertising Expense		18,800
Meals and Entertainment Expense		16,800
Rent Expense		35,800
Litigation Expense		24,500
Life Insurance Premiums Paid		7,700
Salaries and Wages Expense		315,500
Warranty Expense		47,000
Total Operating Expense				580,150
Income From Operations				$394,350

Additional Information:

1.		Rehal is publicly owned and uses IFRS. It has an income tax rate of 25%. The dividend revenue represents dividends received from taxable Canadian corporations.
2.		During the year warranty expense of $47,000 was accrued. $9,400 of this amount was paid in cash during 2020. This is the first year Rehal offers warranties on services rendered.
3.		Property, plant, and equipment was purchased for $576,000 on January 1, 2019. These assets are being depreciated on a straight-line basis over six years with no residual value. For tax purposes the assets are classified as Class 8, 20%. This PPE is considered eligible equipment for purposes of the Accelerated Investment Incentive (the AII) (under the AII, instead of using the half-year rule, companies are allowed a first-year deduction using 1.5 times the standard CCA rate). This rate was used for 2019.
4.		Rehal pays for life insurance policies for its top executives. During 2020, one of the executives died, and the company received a payment of $102,500 from the life insurance company.
5.		On July 1, Rehal was sued by a competitor. Although the lawsuit has not been finalized, management believes that it is probable that a settlement will eventually be reached for $24,500.
6.		On November 15, $30,000 was received from a customer for three months of service, beginning on November 15. One half of this amount was earned and included in revenue for 2020. Advance payments are included in taxable income when the cash is received.
7.		On December 1, one of the company executives received a speeding ticket for $150. The company paid the ticket for the executive and recorded the cost as an office expense.

Calculate taxable income and taxes payable for 2020.

Prepare the journal entries to record 2020 income taxes (current and deferred).