The following information applies to Lambda Corporation, which reports under IFRS.

a$.$ Prior to $2019,$ taxable income and accounting income were identical.

b$.$ Accounting income was $$210,000$ in $2019$ and $$230,000$ in $2020.$

c$.$ Rent of $$90,000$ were collected in advance and taxable in $2019$ but were not earned and included in accounting income until $2020.$

d$.$ Expenses on the $2020$ income statement included political contributions of $$30,000,$ which were not deductible for income tax purposes. $($No contributions made in $2019).$

e$.$ Expenses on the $2019$ income statement included $$52,000$ of estimated warranty costs, which were not deductible for income tax purposes until $2020.$

Required:

$1.$ Compute the taxable income and income tax payable in $2019$ and $2020.$ Assume an average tax rate of $40\%$ for all years. Show all supporting calculations. $(6$ marks$)$

$20192020$ Accounting Income: $$210,000$ $$230,000$

Taxable Income

Income tax payable

$2.$ Prepare the journal entries to record income tax expense, deferred taxes and income tax payable in $2019$ and $2020$ for Lambda. $(6$ marks$)$

$2019$ Debit Credit

$2020$ Debit CrediT