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P18-16. Permanent and temporary differences (L.O. 18-2) (Medium - 15 minutes) 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 Text Effects warranty provision is as follows: Provision for warranties, January 1 balance S 88,000 Provision for the year 32,000 Payments made to fulfill product warranties _(30,009) Provision for warranties, December 31 balance $ 90,000