In $2023,$ Novak Ltd$.,$ which follows IFRS, reported accounting income of $$1,064,000$ and the $2023$ tax rate was $20\%.$ Novak had two

timing differences for tax purposes:

CCA on the company's tax return was $$531,500.$ Depreciation expense on the financial statements was $$319,500.$ These amounts

relate to assets that were acquired on January $1,2023,$ for $$2,126,000$

Accrued warranty expense for financial statement purposes was $$143,300($accrued expenses are not deductible for tax purposes$)$

This is the first year Novak offers warranties.

Both of these timing differences are expected to fully reverse over the next four years, as follows:

Calculate income taxes payable for $2023.$

Income taxes payable $

eTextbook and Media

Prepare the journal entry to record current income taxes for $2023.($Credit account titles are automatically indented when the amount

is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List debit

entry before credit entry.$)$

Account Titles and Explanation

Debit

Credit

eTextbook and Media

Prepare the journal entry to record deferred income taxes for $2023.($Credit account titles are automatically indented when the

amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List

debit entry before credit entry.$)$

In $2024$ the government announced a further tax rate reduction will be effective for the $2027$ taxation year. The new rate will be $15\%.$ Prepare the journal entry to adjust deferred taxes for the reduced rate. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts.

List debit entry before credit entry.$)$