Blue Spruce Corporation purchased equipment very late in 2020. Based on generous capital cost allowance rates provided in the Income Tax Act, Blue Spruce Corporation claimed CCA on its 2020 tax return but did not record any depreciation because the equipment was being tested. This temporary difference will reverse and cause taxable amounts of $25,500 in 2021, $31,800 in 2022, and $42,600 in 2023. Blue Spruces accounting income for 2020 is $213,800 and $187,800 in each of 2021 and 2022, and the tax rate is 30%. There are no deferred tax accounts at the beginning of 2020. Blue Spruce Corporation was informed on December 31, 2021 that the enacted rate for 2022 and subsequent years is 25%.

(a)

Calculate the deferred tax balances at December 31, 2021 and 2022.

		2021		2022
Deferred tax liability OR asset?		$		$