Bridgeport Ltd. began business on January 1, 2019. At December 31, 2019, it had a $ 55,575 balance in the Deferred Tax Liability account that pertains to property, plant, and equipment acquired on July 1, 2019 at a cost of $ 855,000. The property, plant, and equipment is being depreciated on a straight-line basis over six years for financial reporting purposes, and is a Class 8-20% asset for tax purposes. Bridgeports income before income tax for 2020 was $ 61,000. Bridgeport Ltd. follows IFRS. The following items caused the only differences between accounting income before income tax and taxable income in 2020.

1.		In 2020, the company paid $ 51,000 for rent; of this amount, $ 17,000 was expensed in 2020. The other $ 34,000 will be expensed equally over the 2021 and 2022 accounting periods. The full $ 51,000 was deducted for tax purposes in 2020.
2.		Bridgeport Ltd. pays $ 8,700 a year for a membership in a local golf club for the companys president.
3.		Bridgeport Ltd. now offers a one-year warranty on all its merchandise sold. Warranty expenses for 2020 were $ 9,300. Cash payments in 2020 for warranty repairs were $ 4,650.
4.		Meals and entertainment expenses (only 50% of which are ever tax deductible) were $ 12,200 for 2020.
5.		The maximum allowable CCA was taken in 2020. There were no asset disposals for 2020. Assume the PPE is considered eligible equipment for purposes of 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).

Income tax rates have not changed since the company began operations

(a) Your answer is correct. Calculate the balance in the Deferred Tax Asset or Deferred Tax Liability account at December 31, 2020. Balance in deferred tax liability account $ 57,540 i e Textbook and Media List of Accounts Attempts: unlimited (b) X Your answer is incorrect. Calculate income tax payable for 2020. Income Tax Payable $ 18,300