Hang Technologies Inc. held a portfolio of shares and bonds that it accounted for using the fair value through other comprehensive income model at December 31, 2020. This was the first year that Hang had purchased investments. In part due to Hang's inexperience, by December 31, 2020, the market value of the portfolio had dropped $28,000 below its original cost. Hang recorded the necessary adjustments at December 31, 2020, and was determined to hold the securities until the unrealized loss from 2020 could be recovered. By December 31, 2021, Hang's goal of recovery had been realized and the original portfolio of shares and bonds had a fair market value $5,500 higher than the original purchase costs. Hang's income tax rate is 30% for all years. Assume that any gains that will ultimately be realized on the sale of the shares and bonds are taxable as ordinary income when they are realized. Hang applies IFRS. 

Instructions 

a. Prepare the journal entries at December 31, 2020, to accrue the unrealized loss on Hang's securities and the related income tax. 

b. Prepare the journal entries at December 31, 2021, to accrue the unrealized gain on the securities and the related income tax. 

c. Prepare a comparative statement of comprehensive income for the fiscal years ended December 31, 2020 and 2021. Assume net income of $100,000 in each fiscal year. 

d. Indicate how the deferred tax accounts should be presented on the SFP at December 31, 2021.