Cameron Ltd has profit before tax of $500 000 before taking into account the following items:
(a) The company has an accounting profit on instalment sales of $80 000. However, for tax purposes only the collected amount of $20 000 is included in taxable income.
(b) The company has accounting depreciation of $100 000 (carrying amount of the asset at the end of the period is $520 000) and tax depreciation of $150 000 (tax base of the asset at the end of the period is $370 000).
The tax rate is 30%.
Calculate the income tax expense and show all the general journal entries necessary to record income tax using the tax-payable method.