Occidental Exports has income before tax of $660,000 for the year ended December 31. The company’s income tax rate is 30%. Additional information relevant to income taxes includes the following: 

■ Capital cost allowance of $160,000 exceeded accounting depreciation expense of $120,000 in the current year. 

■ The company received non-taxable dividends of $50,000. 

■ The company paid $20,000 for club memberships for its executives. These membership costs are not tax deductible. 

■ The company guarantees its products for three years after sale. For tax purposes, only actual amounts paid for warranties are deductible. Information on the warranty provision is as follows:

Required:

Prepare the journal entries to record income taxes for Occidental Exports.

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Provision for warranties, January 1 balance Provision for the year Payments made to fulfill product warranties Provision for warranties, December 31 balance $ 88,000 32,000 (30,000) $90,000