Storoshenko Yoga Ltd.’s (SYL) accounting income before income taxes was $650,000 for the year ended December 31, 2019, and $950,000 for the year ended December 31, 2020. Additional information pertaining to income taxes follows: 

■ The net book value of the SYL’s property, plant, and equipment at January 1, 2019, was $1,000,000; the UCC was $800,000. 

■ SYL paid $175,000 cash in 2019 to purchase equipment.

■ SYL received $70,000 cash in 2020 from the sale of equipment; the net book value of the equipment sold was $45,000. 

■ $100,000 of depreciation expense was reported on the 2019 income statement versus the $150,000 of CCA claimed for income tax purposes. 

■ $125,000 of depreciation expense was reported on the 2020 income statement versus the $131,000 of CCA claimed for income tax purposes. 

■ SYL’s 2019 revenues included $18,000 in dividends from a taxable Canadian corporation; 2020 revenues included $24,000 in dividends from a taxable Canadian corporation. 

■ SYL’s 2019 expenses included $30,000 in meal and entertainment expenses; 2020 expenses included $20,000 in meal and entertainment expenses. 

■ SYL’s tax rate for 2018 and 2019 was 32%. On January 1, 2020, the government unexpectedly increased the tax rate to 35%, effective immediately. 

Required: 

a. Prepare all journal entries related to income taxes for Storoshenko Yoga Ltd. for 2019. 

b. Prepare all journal entries related to income taxes for Storoshenko Yoga Ltd. for 2020. 

c. Prepare income statement excerpts for 2020, including line items between income before tax and net income.