Blue Spruce Limited had investments in securities on its statement of financial position for the first time at the end of its fiscal year ended December 31, 2020. Blue Spruce reports under IFRS and its investments in securities are to be accounted for at fair value through net income. During 2020, realized losses and gains on the trading of shares and bonds resulted in investment income, which is fully taxable in the year. Blue Spruce also accrued unrealized gains at December 31, 2020, which are not taxable until the investment securities are sold. The portfolio of trading securities had an original cost of $315,250 and a fair value on December 31, 2020, of $319,650. The entry recorded by Blue Spruce on December 31, 2020 was as follows:

FV-NI Investments			4,400
	Investment Income or Loss				4,400

Following the year ended December 31, 2020, Blue Spruce continued to actively trade its securities investments until the end of its 2021 fiscal year, when it was forced to sell several of them at a loss, because of the need for cash for operations. By December 31, 2021, the portfolio of investments contained a single investment in shares, which was purchased in November 2021. Blue Spruce Limited had paid $44,900 for these remaining shares. At December 31, 2021, the shares market value was $41,800. Income before income tax for Blue Spruce was $125,500 for the year ended December 31, 2021. There are no other permanent or reversing/timing differences in arriving at the taxable income for Blue Spruce Limited for the fiscal year ended December 31, 2021. The enacted tax rate for 2021 and future years is 30%.

1-Prepare the necessary journal entry for Blue Spruce Limited to accrue the unrealized loss on its securities investments.

2-Calculate the deferred tax balance at December 31, 2021. 3- Calculate the current tax expense for the year ended December 31, 2021.

4- Prepare the journal entries to record income taxes for 2021. Assume that there have been no entries to the ending balances of deferred taxes reported at December 31, 2020

5- Prepare the income statement for 2021, beginning with the line Income before income tax.

6-Provide the presentation for the SFP for any resulting deferred tax accounts at December 31, 2021. 7-Prepare the journal entries to record income tax for 2021. Assume that, late in 2021, the income tax rate changed to 25% for 2022 and subsequent years.

8-Provide the presentation for the statement of financial position for any resulting deferred tax accounts at December 31, 2021. Assume that Blue Spruce reports under the ASPE future/deferred income taxes method and has chosen the fair value through net income model to account for its securities investments. Assume the tax rate is 30%.