Aylmer has a corporate tax rate of 28%.

There are two differences that have been identified:

Assume that CCA (Capital Cost Allowance) for tax purposes was $10,000 more that straight-line depreciation calculated. Included in administrative expenses are golf club dues that total $3,400.

There was no deferred tax liability or asset in 2019 or prior years.

This is what I have done. I do not know how to figure out the amortization schedule.

calculate taxable income for 2020:

Accounting Income - 400,000

Add: admin expenses $3,400

Deduct CCA (10,000)

Taxable income 393,400

Tax 28%

tax payable 110,152

calculate the deferred tax asset or liability at Dec 31, 2020:

		BV	deductible		balance
	tax	asset	(taxable)	tax	DT Asset
Account	base	(liability)	difference	rate	(DT Liab)
Asset			10,000	28%	2800

Prepare any adjusting entries that would be required related to income tax for 2020:

31-Dec-20	Current Income tax expense		110,152
	Income tax payable			110,152
	Deferred tax expemse		2,800
	Deferred tax liability			2,800

The amortization schedule I started is as follows; however, I believe I am incorrect

			28%
	Date	pmt	Interest	Amortization	Balance
					400,000
		110,152	112000	1,848	398,152
		110,152	111,482.56	1,330.56	396,821.44
		110,152	111,110.00	958.00	395,863.44
		110,152
		110,152
		110,152