Australian Koala Inc.’s (AKI) accounting income before income taxes was $405,000 for the year ended December 31, 2021. Additional information pertaining to income taxes follows: 

■ Depreciation on capital assets was $205,000. Capital cost allowance claimed was $194,000. 

■ Cash remitted to the pension trustee for the year by AKI was $270,000. Pension expense was $280,000. For income tax purposes, pension costs are deductible when cash is remitted to the trustee. 

■ Dividends received from a taxable Canadian corporation were $15,000. 

■ Life insurance premiums on the lives of the AKI’s chief executive officer paid by the company were $12,000. This expense is not deductible for tax purposes. 

■ On January 1, 2021, the government unexpectedly changed the income tax rate from 30% to 25%, effective immediately. At that time, Australian Koala Inc. had a $200,000 net defined pension liability balance on its statement of financial position and the net book value of its capital assets (accounting basis) was $800,000 while the undepreciated capital cost (tax basis) was $750,000. (Note that the pension liability represents the accumulated difference between pension expense and cash remitted to the pension trustee. A liability exists as the cumulative pension expense exceeded the cumulative cash remittance.)

Required:

Prepare the journal entries to record income taxes for Australian Koala Inc. for 2021.