Bramble Corp. purchased depreciable assets costing $450,000 on January 2, 2020. For tax purposes, the company uses CCA in a class that has a 40% rate. Assume these assets are considered eligible equipment for purposes of the Accelerated Investment Incentive (under the AII, instead of using the half-year rule, companies are allowed a first-year deduction using 1.5 times the standard CCA rate). For financial reporting purposes, the company uses straight-line depreciation over 5 years. The enacted tax rate is 30% for all years. This depreciation difference is the only reversing difference the company has. Assume that Bramble has income before income tax of $340,000 in each of the years 2020 to 2024.

(a)

Calculate the amount of capital cost allowance and depreciation expense from 2020 to 2024, as well as the corresponding balances for carrying amount and undepreciated capital cost of the depreciable assets at the end of each of the years 2020 to 2024. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		(A)		(B)		(A - B)		(C)		Carrying		(C - B)
Year		Base		CCA		UCC		Depreciation		Amount		Reversing Difference
2020		$		$		$		$		$		$
2021
2022
2023
2024

(b)

Determine the amount of taxable income in each year from 2020 to 2024.

		2020		2021		2022		2023		2024
Taxable income		$		$		$		$		$

(c)

Determine the amount of deferred taxes that should be reported in the SFP for each year from 2020 to 2024. Show credit balances as negative numbers. (Round answers to 0 decimal places, e.g. 5,275.)

		2020		2021		2022		2023		2024
Deferred tax		$		$		$		$		$

(d)

Prepare the journal entries to record income taxes for each year from 2020 to 2024. (Round answers to 0 decimal places, e.g. 5,275. 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2020
	(To record current tax expense)
	(To record deferred tax expense)
2021
	(To record current tax expense)
	(To record deferred tax expense)
2022
	(To record current tax expense)
	(To record deferred tax expense)
2023
	(To record current tax expense)
	(To record deferred tax expense)
2024
	(To record current tax expense)
	(To record deferred tax benefit)

(e)

Prepare the income tax entries to record income taxes for each year, assuming the management and owners have decided on the taxes payable method. (Round answers to 0 decimal places, e.g. 5,275. 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2020
	(To record current tax expense)
2021
	(To record current tax expense)
2022
	(To record current tax expense)
2023
	(To record current tax expense)
2024
	(To record current tax expense)