Myers Corp. purchased depreciable assets costing $30,000 on January 2, 2017. For tax purposes, the company uses CCA in a class that has a 30% rate. For financial reporting purposes, the company uses straight-line depreciation over five years. The enacted tax rate is 25% for all years. This depreciation difference is the only reversing difference the company has.
(a) Calculate the amount of capital cost allowance and depreciation expense from 2017 to 2021, as well as the corresponding balances for carrying amount and undepreciated capital cost of the depreciable assets at the end of each of the years 2017 to 2021.
(b) Determine the amount of deferred taxes that should be reported in the statement of financial position for each year from 2017 to 2021.