1) Prepare the journal entry to record the effect of the change in the enacted tax rate.

2) Calculate any deferred tax balances at December 31, 2021.

3) Calculate taxable income and income tax payable for 2021.

4) Prepare the journal entries to record income taxes for 2021. a) (To record current tax expense) b) (To record deferred tax expense)

5) Prepare a comparative income statement for 2020 and 2021, beginning with the line Income before income tax.

6) Provide the comparative SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020, and 2021.

7) Provide the comparative balance sheet presentation for any resulting deferred tax balance sheet accounts at December 31, 2020, and 2021, assuming Bramble follows ASPE.

Bramble Tar and Gravel Ltd. operates a road construction business. In its first year of operations, the company obtained a contract to construct a road for the municipality of Cochrane West, and it is estimated that the project will be completed over a three-year period starting in June 2020. Bramble uses the percentage-of-completion method of recognizing revenue on its long-term construction contracts. For tax purposes, and in order to postpone the tax on such revenue for as long as possible, Bramble uses the completed-contract method allowed by the CRA. For the second year of operations, Bramble made progress on the construction of the road for the municipality. The account balances at December 31, 2020 and 2021, for the construction project and the accounting and tax balances of accounts related to the equipment used for construction follow: 2021 $113,000 132,000 Accounts Receivable Asset/Liability (net of billings to date of $798,000 and $400,000) Revenue from Long-Term Contracts Construction Expenses Equipment Accumulated Depreciation-Equipment Undepreciated Capital Cost 430,000 420,000 1,100,000 460,000 618,000 2020 $320,000 100,000 500,000 350,000 1,100,000 176,000 978,000 Bramble's tax rate was 25% in 2020 and 2021. The enacted tax rate for 2022 and subsequent years was reduced to 20% on September 15, 2021. Income before income tax for the year ended December 31, 2020, was $195,000 and for December 31, 2021, was $121,000. Bramble reports under IFRS. Bramble Tar and Gravel Ltd. operates a road construction business. In its first year of operations, the company obtained a contract to construct a road for the municipality of Cochrane West, and it is estimated that the project will be completed over a three-year period starting in June 2020. Bramble uses the percentage-of-completion method of recognizing revenue on its long-term construction contracts. For tax purposes, and in order to postpone the tax on such revenue for as long as possible, Bramble uses the completed-contract method allowed by the CRA. For the second year of operations, Bramble made progress on the construction of the road for the municipality. The account balances at December 31, 2020 and 2021, for the construction project and the accounting and tax balances of accounts related to the equipment used for construction follow: 2021 $113,000 132,000 Accounts Receivable Asset/Liability (net of billings to date of $798,000 and $400,000) Revenue from Long-Term Contracts Construction Expenses Equipment Accumulated Depreciation-Equipment Undepreciated Capital Cost 430,000 420,000 1,100,000 460,000 618,000 2020 $320,000 100,000 500,000 350,000 1,100,000 176,000 978,000 Bramble's tax rate was 25% in 2020 and 2021. The enacted tax rate for 2022 and subsequent years was reduced to 20% on September 15, 2021. Income before income tax for the year ended December 31, 2020, was $195,000 and for December 31, 2021, was $121,000. Bramble reports under IFRS