Blue Spruce Tar and Gravel Ltd. operates a road construction business. In its first year of operations, the company obtained a contract to construct a road for the municipality of Cochrane West, and it is estimated that the project will be completed over a three-year period starting in June 2020. Blue Spruce uses the percentage-of-completion method of recognizing revenue on its long-term construction contracts. For tax purposes, and in order to postpone the tax on such revenue for as long as possible, Blue Spruce uses the completed-contract method allowed by the CRA. For the second year of operations, Blue Spruce made progress on the construction of the road for the municipality. The account balances at December 31, 2020 and 2021, for the construction project and the accounting and tax balances of accounts related to the equipment used for construction follow: 2021 2020 Accounts Receivable $ 109,000 $320,000 Asset/Liability (net of billings to date of $794,000 and $400,000) 131,000 100,000 Revenue from Long-Term Contracts 425,000 500,000 Construction Expenses 417,000 350,000 Equipment 1,100,000 1,100,000 Accumulated Depreciation Equipment 451,000 182,000 Undepreciated Capital Cost 626,000 975,000 Blue Spruce's tax rate was 25% in 2020 and 2021. The enacted tax rate for 2022 and subsequent years was reduced to 20% on September 15, 2021. Income before income tax for the year ended December 31, 2020, was $195,000 and for December 31, 2021, was $123,000. Blue Spruce reports under IFRS. Prepare the journal entry to record the effect of the change in the enacted tax rate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit September 15, 2021 e Textbook and Media List of Accounts Prepare the journal entries to record income taxes for 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit (To record current tax expense) (To record deferred tax expense) e Textbook and Media List of Accounts Prepare a comparative income statement for 2020 and 2021, beginning with the line "Income before income tax". Blue Spruce Tar and Gravel Ltd. Comparative Income Statement (Partial) 2021 2020 $ $ $ $ eTextbook and Media List of Accounts Provide the comparative SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020, and 2021. Blue Spruce Tar and Gravel Ltd. Comparative Statement of Financial Position (Partial) V 2021 2020 $ e Textbook and Media List of Accounts Provide the comparative balance sheet presentation for any resulting deferred tax balance sheet accounts at December 31, 2020, Provide the comparative balance sheet presentation for any resulting deferred tax balance sheet accounts at December 31, 2020, and 2021, assuming Blue Spruce follows ASPE. Blue Spruce Tar and Gravel Ltd. Comparative Balance Sheet (Partial) 2021 2020 $ $ e Textbook and Media List of Accounts Blue Spruce Tar and Gravel Ltd. operates a road construction business. In its first year of operations, the company obtained a contract to construct a road for the municipality of Cochrane West, and it is estimated that the project will be completed over a three-year period starting in June 2020. Blue Spruce uses the percentage-of-completion method of recognizing revenue on its long-term construction contracts. For tax purposes, and in order to postpone the tax on such revenue for as long as possible, Blue Spruce uses the completed-contract method allowed by the CRA. For the second year of operations, Blue Spruce made progress on the construction of the road for the municipality. The account balances at December 31, 2020 and 2021, for the construction project and the accounting and tax balances of accounts related to the equipment used for construction follow: 2021 2020 Accounts Receivable $ 109,000 $320,000 Asset/Liability (net of billings to date of $794,000 and $400,000) 131,000 100,000 Revenue from Long-Term Contracts 425,000 500,000 Construction Expenses 417,000 350,000 Equipment 1,100,000 1,100,000 Accumulated Depreciation Equipment 451,000 182,000 Undepreciated Capital Cost 626,000 975,000 Blue Spruce's tax rate was 25% in 2020 and 2021. The enacted tax rate for 2022 and subsequent years was reduced to 20% on September 15, 2021. Income before income tax for the year ended December 31, 2020, was $195,000 and for December 31, 2021, was $123,000. Blue Spruce reports under IFRS. Prepare the journal entry to record the effect of the change in the enacted tax rate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit September 15, 2021 e Textbook and Media List of Accounts Prepare the journal entries to record income taxes for 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit (To record current tax expense) (To record deferred tax expense) e Textbook and Media List of Accounts Prepare a comparative income statement for 2020 and 2021, beginning with the line "Income before income tax". Blue Spruce Tar and Gravel Ltd. Comparative Income Statement (Partial) 2021 2020 $ $ $ $ eTextbook and Media List of Accounts Provide the comparative SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020, and 2021. Blue Spruce Tar and Gravel Ltd. Comparative Statement of Financial Position (Partial) V 2021 2020 $ e Textbook and Media List of Accounts Provide the comparative balance sheet presentation for any resulting deferred tax balance sheet accounts at December 31, 2020, Provide the comparative balance sheet presentation for any resulting deferred tax balance sheet accounts at December 31, 2020, and 2021, assuming Blue Spruce follows ASPE. Blue Spruce Tar and Gravel Ltd. Comparative Balance Sheet (Partial) 2021 2020 $ $ e Textbook and Media List of Accounts