View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct. Bramble Enterprises Ltd., a private company following ASPE earned accounting income before taxes of $1,722,000 for the year ended December 31, 2020. During 2020, Bramble paid $232,000 for meals and entertainment expenses. In 2017, Bramble's tax accountant made a mistake when preparing the company's income tax return. In 2020, Bramble paid $22,000 in penalties related to this error. These penalties were not deductible for tax purposes. Bramble owned a warehouse building for which it had no current use, so the company chose to use the building as a rental property. At the beginning of 2020, Bramble rented the building to SPK Inc. for two years at $256,000 per year. SPK paid the entire two years' rent in advance Bramble used the straight-line depreciation method for accounting purposes and recorded depreciation expense of $406,000. For tax purposes, Bramble claimed the maximum capital cost allowance of $631,000. Bramble began to sell its products with a two-year warranty against manufacturing defects in 2020 to match a warranty introduced by its main competitor. In 2020, Bramble accrued $592,000 of warranty expenses: actual expenditures for 2020 were $286,000 with the remaining $306,000 anticipated in 2021. In 2020, Bramble was subject to a 35% income tax rate. During the year, the federal government announced that tax rates would be decreased to 33% for all future years beginning January 1, 2021. Prepare the journal entries to record current and future income taxes for 2020. (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 Current Tax Expense 549150 Income Tax Payable (To record current tax expense.) Future Tax Asset 549150 0 Future Tax Liebilley (To record future tax expense.) eTextbook and Media List of Accounts View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct. Bramble Enterprises Ltd., a private company following ASPE earned accounting income before taxes of $1,722,000 for the year ended December 31, 2020. During 2020, Bramble paid $232,000 for meals and entertainment expenses. In 2017, Bramble's tax accountant made a mistake when preparing the company's income tax return. In 2020, Bramble paid $22,000 in penalties related to this error. These penalties were not deductible for tax purposes. Bramble owned a warehouse building for which it had no current use, so the company chose to use the building as a rental property. At the beginning of 2020, Bramble rented the building to SPK Inc. for two years at $256,000 per year. SPK paid the entire two years' rent in advance Bramble used the straight-line depreciation method for accounting purposes and recorded depreciation expense of $406,000. For tax purposes, Bramble claimed the maximum capital cost allowance of $631,000. Bramble began to sell its products with a two-year warranty against manufacturing defects in 2020 to match a warranty introduced by its main competitor. In 2020, Bramble accrued $592,000 of warranty expenses: actual expenditures for 2020 were $286,000 with the remaining $306,000 anticipated in 2021. In 2020, Bramble was subject to a 35% income tax rate. During the year, the federal government announced that tax rates would be decreased to 33% for all future years beginning January 1, 2021. Prepare the journal entries to record current and future income taxes for 2020. (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 Current Tax Expense 549150 Income Tax Payable (To record current tax expense.) Future Tax Asset 549150 0 Future Tax Liebilley (To record future tax expense.) eTextbook and Media List of Accounts