Sweet Corporation has provided the following information for the year ended December 31, 2020.

Sweet Corporation Income Statement For the Year Ended December 31, 2020
Revenue
Service Revenue		107,500
Dividend Revenue		8,900		$116,400
Operating Expenses
Supplies Expense		2,000
Depreciation Expense		19,700
Advertising Expense		900
Meals and Entertainment Expense		6,100
Rent Expense		9,200
Litigation Expense		8,400
Salaries and Wages Expense		40,800
Warranty Expense		3,800		90,900
Operating Income before income tax				$25,500

Additional Information:

1.		Sweet is privately owned, and uses ASPE. The dividend revenue represents dividends received from taxable Canadian corporations.
2.		Sweets income tax rate is 30%.
3.		On January 1, 2020, Sweet had a future tax liability of $2,955 related to its property, plant, and equipment (PPE).
4.		During the year warranty expense of $3,800 was accrued. One half of this amount was paid during 2020. This is the first year Sweet offers warranties on services rendered.
5.		Property, plant, and equipment was purchased for $98,500 on January 1, 2019. 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 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).
6.		On July 1, Sweet 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 $8,400.
7.		On November 30, $3,600 cash was paid in advance for four months of advertising, starting Dec. 1.

Part 1

Calculate taxable income and taxes payable for 2020.

Taxable Income		$
Taxes Payable		$

Part 2

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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
(To record current tax expense.)
(To record future tax expense.)

Part 3

Explain how the future tax amounts will be shown on the balance sheet.

Noncurrent Future Tax Liability		$
Current Future Tax Asset		$