Aylmer follows IFRS and has a corporate tax rate of 26%.

There are two differences that have been identified:

Assume that CCA (Capital Cost Allowance) for tax purposes was $20,000 more that straight-line depreciation calculated. Included in administrative expenses are golf club dues that total $10,250.

There was no deferred tax liability or asset in 2020 or prior years.

In the Excel spreadsheet, see the tab labelled Deferred Taxes to make any calculations, including an amortization schedule, to support journal entries. Note that there are assumptions in that tab follow the instructions in the tab carefully.

A) Calculate taxable income for 2021

Accounting Income			420,000	ASSUME THIS IS CORRECT!

B) Calculate the deferred tax asset or liability at Dec 31, 2020

Account	Tax Base	Book Value	Deductable	Tax Rate	Balance

C) Prepare any adjusting entries that would be required related to income tax