Windsor Services has provided the following information for use in determining its income tax obligations related to the year ended December 31, 2020 Windsor Services Income Statement For the Year Ended December 31, 2020 Revenue Service Revenue $807,000 Dividend Revenue 42.500 Life Insurance Claim Received 101.000 Total Revenue Operating Expenses Office Expenses 18.550 Depreciation Expense 96,500 wiring Fyrense 18.500 $950.500 Office Expenses Depreciation Expense Advertising Expense Meals and Entertainment Expense Rent Expense Litigation Expense Life Insurance Premiums Pald Salaries and Wages Expense Warranty Expense Total Operating Expense Income From Operations 18,550 96.500 18,500 18.000 35,400 24.800 7.700 300,000 48.500 567.950 $382.550 Additional Information 1. Windsor is publicly owned and uses IFRS, It has an income tax rate of 25% The dividend revenue represents dividends received from taxable Canadian corporations During the year warranty expense of $48.500 was accroed. $9.700 of this amount was paid in cash during 2020. This is the first year Windsor offers warranties on services rendered 2 3. 4. Property, plant, and equipment was purchased for $579,000 on January 1, 2019. These assets are being deprecated 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 "Ally under the All, instead of using the half-year rule, companies are allowed a first-year deduction using 15 times the standard CCA rate). This rate was used for 2019. Windsor pays for life insurance policies for its top executives. During 2020, one of the executives died, and the company received a payment of $101.000 from the life insurance company. On July 1, Windsor 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 $24.800 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 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, 5. 6. 7 Calculate taxable income and taxes payable for 2020 Taxable income $ 460250 Taxes Payable $ 115062 Prepare the journal entries to record 2020 income taxes (current and deferred). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. I no entry is required, select "No Entry" for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit 115062 Current Tax Expense 115062 Current Tax Payable To record current tax expense.) Deferred Tax Expense 29075 29075 Deferred Tax Liability To record deferred tax benefit) X Your answer is incorrect Explain how the future tax amounts will be shown on the statement of financial position Current Future Tax Libility 29075