Question: In 2026, Maple Leafs Co. sells its single machine, which cost $100,000 and has an undepreciated capital cost (UCC) of $25,000 for tax purposes. For

In 2026, Maple Leafs Co. sells its single machine, which cost $100,000 and has an undepreciated capital cost (UCC) of $25,000 for tax purposes. For financial reporting, the machine has carrying amount of $40,000. The sale price of the machine is $30,000. Aside from the sale of the machine, the company has other income (before taxes) of $600,000, which includes non-taxable dividends of $120,000 dollars received during the year. There are no other permanent or temporary differences. The company faces an income tax rate of 35%.

Required

Provide the journal entries for the company for 2026.

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