View Policies Current Attempt in Progress For the year ended December 31, 2020. Buffalo Ltd. reported income before income taxes of $94,000. In 2020, Buffalo Ltd. paid $48,000 for rent of this amount $16,000 was expensed in 2020. The remaining $32,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2021-2022 period. The full $48,000 was deductib for tax purposes in 2020. The company paid $66,000 in 2020 for membership in a local golf club (which was not deductible for tax purposes). In 2020 Buffalo Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2020 were $46,000, of which $31,000 was actual repairs for 2020 and the remaining $15.000 was estimated repairs to be completed in 2021. Meal and entertainment expenses totalled $16,000 in 2020. only half of which were deductible for income tax purposes. Depreciation expense for 2020 was $220,000. Capital Cost Allowance (CCA) claimed for the year was $245,000. Buffalo was subject to a 20% income tax rate for 2020. Buffalo follows IFRS. At January 1, 2020, Buffalo Ltd. had no balances in deferred tax accounts Calculate taxable income and taxes payable for 2020. ACH Taxable income, 2020 Taxes payable, 2020 Prepare the journal entries to record 2020 income taxes (current and deferred). (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 for the amounts.) Account Titles and Explanation Debit Credit (To record current tax expense.) (To record deferred tax expense.) ACE