The following information relates to the accounting income for Saskatchewan Uranium Enterprises (SUE) for the current year ended December 31:

During the year, the company sold one of its machines with a carrying value of $60,000 for proceeds of $20,000, resulting in an accounting loss of $40,000. This loss has been included in the pre-tax income figure of $840,000 shown above. For tax purposes, the proceeds from the disposal were removed from the undepreciated capital cost (UCC) of Class 8 assets. 

The deferred income tax liability account on January 1 had a credit balance of $150,000. This balance is entirely related to property, plant, and equipment. 

Required:

Prepare the journal entries to record income taxes for SUE.

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Accounting income before income taxes Depreciation and depletion expense Capital cost allowance claimed Membership initiation fees (not deductible) Loss on disposal of equipment-see additional information below Income tax rate $840,000 450,000 570,000 5,000 40,000 30%