Champion Enterprises Ltd. makes and sells a variety of overhead doors for Canadian consumers. Champion Enterprises generated the following amount of income before income taxes for the 2022 year:

Income before income taxes $416,512

The following information comes from the corporate accounting and taxation records of Champion Enterprises for the year ended December 31, 2022:

(a) On January 1, 2021, Champion Enterprises purchased a machine which is depreciated annually using the straight-line method. Other information pertaining to this machine follows:

Cost of the machine to Champion Enterprises $762,384

Residual value of machine $60,991

Estimated useful life of machine 10

Undepreciated capital cost of machine at 12/31/2021 $601,651

Capital cost allowance claimed for 2022 taxation year $89,247

(b) The following information pertains to the product warranties offered by Champion Enterprises:

Balance in Warranty Liability account at December 31, 2021 $17,247

Balance in Warranty Liability account at December 31, 2022 $20,582

Warranty costs paid during 2022 $40,165

(c) Champion Enterprises generated a capital gain on the sale of land during the 2022 year. Note that for taxation purposes, only 1/2 of this gain is taxable:

Amount of capital gain on sale of land $42,064

(d) Champion Enterprises received dividends from a taxable Canadian corporation in the following amount during the 2022 year: $21,651

(e) Champion Enterprises has a corporate tax rate of 25%.

(f) Champion Enterprises had the following balance in its deferred tax liability account at December 31, 2021: $18,337

(g) Champion Enterprises follows IFRS.

Required: 1. Calculate taxable income and income tax payable for the 2022 year. (5 marks)

2. Determine the amount that will appear on the December 31, 2022 statement of financial position for deferred taxes. (4 marks)

3. Prepare the journal entries to record income taxes for 2022. (2 marks)

4. Prepare the income tax expense section of the income statement for 2022, beginning with the line "Income before income taxes". (2 marks)