Maui Sun Inc.’s accounting income before income taxes was $625,000 for the year ended December 31, 2021. Additional information pertaining to income taxes follows:

■Depreciation on capital assets was $287,000. Capital cost allowance claimed was $395,000. 

■ Warranty claims paid out for the year were $45,000. Provision for warranty expense was $22,000. 

■Dividends received from a taxable Canadian corporation were $5,000. 

■Golf club membership dues paid for company executives amounted to $20,000. This expense is not deductible for tax purposes. 

■ On January 1, 2021, the government unexpectedly changed the income tax rate from 35% to 40%, effective immediately. At that time Maui Sun Inc. had a $56,000 provision for warranty liability balance on its statement of financial position and the net book value of its capital assets (accounting basis) was $1,276,000, while the undepreciated capital cost (tax basis) was $856,000.

Required:

Prepare all income tax related journal entries for Maui Sun Inc. for 2021.