The following data represent the differences between accounting and tax income for Oriental Imports Inc., whose pre$-$tax accounting income is $$860,000$ for the year ended December $31.$ The company's income tax rate is $40\%.$ Additional information relevant to income taxes includes the following: Capital cost allowance of $$202,500$ exceeded accounting depreciation expense of $$100,000$ in the current year.

Rents of $$5,000,$ applicable to next year, had been collected in December and deferred for financial statement purposes but are taxable in the year received. In a previous year, the company established a provision for product warranty expense. A summary of the current year's

transactions appears below: For tax purposes, only actual amounts paid for warranties are deductible. Insurance expense to cover the company's executive officers was $$5,200$ for the year, and you have determined that this expense is not deductible for tax purposes.

Required:

Prepare the journal entries to record income taxes for Oriental Imports.