Seung Hyun Kim Limited follows IFRS, is in the process of preparing its financial statements for its second year of operations ending December 31, 2020. Pertinent information follows:

1. Accounting income before tax is $ 9,000,000.
2. Depreciation on property, plant, and equipment is $ 900,000 and CCA claimed is $1,500,000.
3. The company sells a product with a 2-year warranty. The estimated warranty cost on an Accrual basis is $3,000,000 and spent $1,200,000 on a Cash Basis.
4. The accounting income before tax included a $ 300,000 fine.
5. The enacted income tax rate is 40.0%.
6. On December 31, 2020, the company received three years advance rent income (for 2021 through 2023) of $ 540,000, which was recorded as unearned revenue for book purposes, but which must be reported as 2020 revenue for income tax purposes.

Prepare the compound journal entry to record the Income Tax for 2020.

2. Prepare the 2020 income statement, beginning with income before income taxes.

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