1. At the beginning of 20x5, Rundle Ltd. reported a deferred tax liability of $300,000. The net book value of the capital assets was $2,600,000, while UCC was $1, 600, 000. In 20x5, depreciation was $400, 000, while CCA was $625, 000. The tax rate changed in 20X5 to be 35%. What is the adjustment required to the deferred taxes? a. The future tax liability will increase by $67, 500 in 20x5. b. The future tax liability will increase by $218, 750 in 20x5. c. The future tax liability will increase by $128, 750 in 20x5. d. The future tax liability will decrease by 120,000 2. Reado Inc. has the following information for 20X4: Accounting income before tax is $400,000; Permanent difference is a non-deductible expense of $53, 000; depreciation is $260, 000 and CCA is $310, 000. The company's tax rate for 20x3 and 20X4 is 30%. Using the short cut method: a. The increase to the deferred tax liability account is $15,000. b. The taxes payable is calculated to be $120, 900. c. The income tax expense is calculated to be $120, 000. d. The decrease to the deferred tax liability account is $15, 000. 3. A firm reported the following in its income statement for the current year: depreciation expense, $4,000; pollution violation fine, $12,000; pre-tax accounting income, $10,000. The tax rate is 40%. For tax purposes, the CCA deduction was $9,000. What amount of CURRENT income tax expense will be recognized for this year? a. $7,800 b. $4,000 c. $6,800 d. $400 e. $8,800 4.JMR Company leases an asset from KAR Company. The rate implicit in the lease is 12% and JMR's incremental borrowing rate is 11%. JMR is aware of the implicit rate. Assuming that both rates would provide an MLP amount well below the fair value of the leased asset, the rate that JMR should use for discounting lease payments is: a. 11% under both ASPE and IFRS. b. 12% under ASPE and 11% under IFRS. C. 11% under ASPE and 12% under IFRS. d. 12% under both ASPE and IFRS