The financial statements of Dakar Corp. for a four-year period reflected the following pre-tax amounts:

Dakar has a tax rate of 40% each year and claimed CCA for income tax purposes as follows: 20X4, $16,000; 20X5, $12,000; 20X6, $8,000; and 20X7, $4,000. There were no deferred income tax balances at 1 January 20X4.

Required:
For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also net income.

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Revenues Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income 20X4 Statement of Profit and Loss (summarized) Statement of Financial Position (partial) $ 40,000 Machine (four-year life, no residual value), at cost Less: Accumulated depreciation $ 110,000 $ 124,000 (80,000) (92,000) (10,000) (10,000) $ 20,000 $ 22,000 20X5 (10,000) $ 30,000 20X6 20X7 $144,000 $164,000 (95,000) (128,000) (10,000) (10,000) $39,000 $26,000 $40,000 (20,000) (30,000) $ 20,000 $10,000 $ $ 40,000 $40,000 (40,000) 0