Country of location is Canada PLEASE MAKE SURE YOU SHOW ALL YOUR STEPS!

Question 4 (13 marks) HAL Corp.'s deferred income tax liability account as at December 31, 2018, was $268,950 and was based on three temporary differences: the difference between the assets' net book value of $6,580,000 and their undepreciated capital cost of $4,200,000 a warranty liability of $365,000 a loss carryforward of $1,200,000 Information for the December 31, 2019, year end is as follows: net income before taxes $2,650,000 depreciation expense $650,000 capital cost allowance claim - $875,000 one asset was disposed of for proceeds of $210,000; the asset's net book value was $180,000, and the asset's original cost was $300,000 dividend revenue from taxable Canadian corporations amounted to $120,000 meals and entertainment expenses - $56,000 warranty liability at the end of the year - $420,000 revenues reported for accounting purposes in 2019 include $250,000 that will be taxable in 2020 The tax rate in effect for 2019 was 35%. On December 31, 2019, the government enacted a tax rate of 36% for 2020. HAL Corp.'s tax policy is to minimize taxable income. Required: a) Calculate the tax rate at December 31, 2018. (2 marks) b) Calculate the current and deferred portion of the income tax expense for the year ended December 31, 2019. (11 marks) Question 4 (13 marks) HAL Corp.'s deferred income tax liability account as at December 31, 2018, was $268,950 and was based on three temporary differences: the difference between the assets' net book value of $6,580,000 and their undepreciated capital cost of $4,200,000 a warranty liability of $365,000 a loss carryforward of $1,200,000 Information for the December 31, 2019, year end is as follows: net income before taxes $2,650,000 depreciation expense $650,000 capital cost allowance claim - $875,000 one asset was disposed of for proceeds of $210,000; the asset's net book value was $180,000, and the asset's original cost was $300,000 dividend revenue from taxable Canadian corporations amounted to $120,000 meals and entertainment expenses - $56,000 warranty liability at the end of the year - $420,000 revenues reported for accounting purposes in 2019 include $250,000 that will be taxable in 2020 The tax rate in effect for 2019 was 35%. On December 31, 2019, the government enacted a tax rate of 36% for 2020. HAL Corp.'s tax policy is to minimize taxable income. Required: a) Calculate the tax rate at December 31, 2018. (2 marks) b) Calculate the current and deferred portion of the income tax expense for the year ended December 31, 2019. (11 marks)