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Bridgeport Tar and Gravel Ltd. operates a road construction business in its first year of operations, the company won a contract to build a road

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Bridgeport Tar and Gravel Ltd. operates a road construction business in its first year of operations, the company won a contract to build a road for the municipality of Cochrane West. It is estimated that the project will be completed over a three-year period starting in June 2020. Bridgeport 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, Bridgeport uses the completed-contract method allowed by the CRA. For the second year of operations. Bridgeport 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 $107.000 $320,000 129.000 100.000 Accounts Receivable Asset/Liability (net of billings to date of 5796,000 and $400,000) Revere from Lone-Term Contracts Construction Expenses 425.000 500.000 413.000 350.000 Equipment 1.100.000 1.100.000 453.000 170,000 Accumulated Depreciation Equipment Undepreciated Capital Cost 619.000 980,000 Bridgeport's tak rate is 25% for 2020 and subsequent years. Income before income tax for the year ended December 31, 2020. was 5195 000 and for December 31 2021, was $129.000 Calculate the deferred tax asset or liability balances at December 31, 2021. Deferred tax eTextbook and Media List of Accounts Calculate taxable income and income tax payable for 2021. Taxable income 5 Income tax payable $ e Textbook and Media 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) Prepare a comparative Income statement for 2020 and 2021, beginning with the line tocome before income tax Bridgeport Tar and Gravel Ltd. Comparative Income Statement (Partial) 2021 2020 Provide the statement of financial position presentation for any resulting deferred tax balance sheet accounts at December 31, 2020 and 2021 Bridgeport Tar and Gravel Ltd. Statement of Financial Position (Partial) 2021 2020 $ Provide the comparative balance sheet presentation for any resulting deferred tax balance sheet accounts at December 31, 2020 and 2021, assuming Bridgeport follows ASPE Bridgeport Tar and Gravel Ltd. Comparative Balance Sheet (Partial) 2021 2020 S S

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