23 Not yet answered Marked out of 25.00 Flag question Semafo Ltd. began its operations on January 1, 2020, and it adopts IFRS. Its pre-tax accounting income for the first two years is as follows: 2020 2021 $ 80,000 150,000 The following items caused the only differences between pre-tax accounting income and taxable income of Semafo: 1. In 2020, the company collected $ 75,000 rental revenue, of which $ 25,000 was earned in 2020; and the other $ 50,000 will be earned equally during 2021 and 2022. The full amount of $ 75,000 was included in taxable income in 2020. 2. Semafo pays $ 5,000 a year for a membership in a local golf club. 3. In 2021, the company terminated a top executive and agreed to pay him $ 30,000 severance pay. This will be paid $ 10,000 each year for three continuous years starting in 2021. The 2021 payment was made as scheduled. The entire $ 30,000 severance pay was expensed in 2021 for book purposes. For tax purposes, the severance pay is deductible only when it is paid. Semafo's enacted tax rates at December 31, 2020: 2020 30% 2021 35% Requirements: 2022 40% 2023 40% a) Calculate the taxable income for 2020 and 2021, respectively. (6 marks) b) Calculate the deferred tax asset and/or liability at the end of 2020, and prepare adjusting journal entries to record income taxes for 2020. (7 marks) c) Prepare a schedule of the deferred tax asset and/or liability at the end of 2021, and calculate the deferred tax expense (benefit) for 2021. (6 marks) d) Prepare adjusting entries to record income taxes for 2021 (both current and deferred), and show how the deferred tax asset or liability should be reported on SFP at December 31, 2021. (6 marks)