21 RENAXHE 20 23 25 26 24 14 15 19 13 16 17 18 9 10 11 12 Patio Co. began operations in 2018 and follows IFRS. You, senior accountant of Patio Co., are working on the 2020 year's tax calculation and noted the following information: (1). The tax rate for 2018 and 2019 was 30%. The tax rate for 2020 and future years is 25%. The new rate was enacted in November, 2020 and was unknown prior to that date. (2). The company began operations in 2018 and the following are differences between accounting and taxable income: 22 Reported on tax return: Item Reported on income statement: Estimated warranty expense Depreciation expense Non-deductible expenses Non-taxable income Advertising expense (see note 3) Actual warranty costs incurred Capital cost allowance Advertising costs (see note 3) 2018 2019 2020 $18,000 $27,000 $43,000 48,000 48,000 48,000 2,000 5,000 8,000 5,000 8,000 6,700 37,500 $15,000 $20,000 32,000 57,000 $50,000 60,000 75,000 (3). Patio Co. signed a two-year advertising service with the local radio station on January 1, 2020 for the period January 1, 2020 to December 31, 2021. The total fees of $75,000 were paid on January 1, 2020. 27 28 (4). The warranty covers all parts and labor for a one-year time period. (5). For the year-ended December 31, 2020, Patio Co. reported a $500,000 accounting income before income tax expense. This amount includes a before tax loss from discontinued operations of $50,000, of which only one-half is tax deductible. n SPECIFIC INSTRUCTIONS Ambeled in Excel og the provided the sire to how a cidations in the blue boses! Any workspace provided is NOT for marks. approprieta analysis given ITEM descri se elect as and access from the respective dropdown broms Marks earned are in bluebes only! ITEM COA Depreciation DR/(CR) Warranty DR/(CR) Advertising 2018 2019 Jan 1/20 2020 Dec. 31/20 Year 2018 2019 Jan. 1/20 2020 Dec. 31/20 Reed (A) OFFERED TAK SCHEDULES Deductible/ (Text) Temporary Difference 2018 2019 Jan 1/20 2020 Dec. 31/20 Acte to date Tax to date Year Acctg to date Tax to date Acctg to date Tax to date Statement of Profit/Loss Account name Amount (5) Deductible/ (Taxable) Temporary Difference Deductible/ (Taxable) Temporary Difference Required (C) PRESENTATION OF DEFERRED TAXES Rate Rate Rate Deferred fox A/ (Lady) Deferred Tax Asset/ (Liability) Deferred Tax Asset/ (Liability) What accounts AND amounts would Patio Co. report on its December 31, 2020 financial statements associated with deferred income taxes ONLY? Complete the appropriate tables below. From the drop-down boxes provided, select the appropriate account name and classification. Show debits as positive numbers and credits as negative numbers. Statement of Financial Position Classification Account name Amount (5) Date Dec. 31/20 Required (9) OFFERED TAX JOURNAL ENTRIES Date Dec. 31/20 Date Dec. 31/20 Account Title Account Title Account Title + Debit Debit Credit Debit Credit Credit