Sabbie Corporation, incorporated in 2018 had the following

Sabbie Corporation, incorporated in 2018 had the following data.

                                                                            2018            2019                           

Accounting income before tax:                       $ 210,000        $270,000                    

Items included in arriving at income before tax:

Golf dues                                                              8,000              9,000       

Dividends received from a Canadian corp.        20,000            60,000                           

Depreciation expense                                      100,000            100,000       

Warranty expense                                              50,000              60,000      

Additional information:

    Capital cost allowance                                 150,000             160,000      

    Warranty costs paid for                                  30,000               70,000                          

The tax rate in effect is 32% for 2018 and 35% for 2019.

Required:

1. Prepare a tax reconciliation for 2018 and 2019. ie. Calculate taxable income and tax payable.
2. Prepare journal entries for 2018 and 2019.
3. Prepare a partial balance sheet for 2018 and 2019.
4. Prepare the Income Tax Expense disclosure required on the Income Statement for 2018 and 2019.