Question 4:During 2016, Magneto Magnets Inc. income statement reported income of $300,000 before tax. The company’sincome tax return filed with the Canada Revenue Agency showed taxable income of $250,000. During 2016 Magneto Magnets was subject to an income tax rate of 25%. The company uses ASPE.Requirements:1.Journalize Magneto Magnets income taxes for 2016.
2.How much income tax did Magneto Magnets owe at the end of 2016?