company

X company started business on January 15 2019. X purchased $500,000 worth of equipment which it is amortizing on a straight-line basis over 10 years (30%CCA rate for income tax purposes, subject to the half-year rule in the year of acquisition). The following information is available regarding X's operations. 2019 2020 Accounting income before income taxes. $800,000.... .$900,000 Non-deductible interest expense. 60,000. 40,000 Tax-free dividends from Canadian companies. 100,000. $110,000 The income tax rate was 40% throughout 2019, and that was the rate used to prepare the 2019 financial statements. The government made a surprise announcement late in 2020 that the enacted rate for 2020 and future years would be 30%. Required:- i. Show how the Income tax information would be presented in the 2019 income statement and balance sheet, if the Company used the Tax Payable method of accounting for taxes (Include the specific dollar amount) (6 marks). ii. Disregard (1) above and assume instead that the Company uses the Deferred Income Tax Method of Accounting for taxes, prepare the journal entry(ies) required to record the deferred taxes for 2020 (10 marks)