The records for AC$3220$ Ltd$.$ show the following data for calendar $2023$:

Golf club dues were $$3,800.$

Machinery was acquired in January $2023$ for $$300,000.$ AC$3220$ uses straight$-$line depreciation over a

ten$-$year life $($no residual value$).$ For tax purposes, AC$3220$ claimed $42,000$ of CCA on the equipment for

Total meals and accommodations expensed for the year was $8,000.$

The estimated warranty liability related to $2023$ sales was $$19,600.$ Warranty repair costs paid during

$2023$ were $$13,600.$ The remainder will be paid in $2024.$

Pre$-$tax accounting income is $$250,000.$ The enacted income tax rate is $25\%.$

Instructions

a$)$ Prepare a schedule $($starting with pre$-$tax accounting income$)$ to calculate taxable income.

b$)$ Prepare the required adjusting entries to record income taxes for $2023.$The records for AC$3220$ Ltd$.$ show the following data for calendar $2023$:

$1.$ Golf club dues were $$3,800.$

$2.$ Machinery was acquired in January $2023$ for $$300,000.$ AC$3220$ uses straight$-$line depreciation over a ten$-$year life $($no residual value$).$ For tax purposes, AC$3220$ claimed $42,000$ of CCA on the equipment for $2023.$

$4.$ Total meals and accommodations expensed for the year was $8,000.$

$5.$ The estimated warranty liability related to $2023$ sales was $$19,600.$ Warranty repair costs paid during $2023$ were $$13,600.$ The remainder will be paid in $2024.$

$6.$ Pre$-$tax accounting income is $$250,000.$ The enacted income tax rate is $25\%.$

Instructions

a$)$ Prepare a schedule $($starting with pre$-$tax accounting income$)$ to calculate taxable income.

b$)$ Prepare the required adjusting entries to record income taxes for $2023.$