Crispin Corp. in its first year of operations recorded depreciation of $40,000 but CCA of $60,000. They also expensed $32,000 to warranties but only had warranty claims of $20,000. This led to the following differences between its carrying amounts and the tax bases of its assets and liabilities at the end of 2019. Carrying Amount Tax Basis Equipment (net) 200,000 180,000 Estimated Warranty Liabilities 12,000 0 In addition, the company pays $6,000 for an exclusive golf club membership for the CEO which is not deductible for tax purposes (and never ever will be.) It is estimated that the warranty liability will be settled in 2020. The difference in equipment (net) will result in future taxable amounts of $10,000 in 2020, $8,000 in 2021, and $2,000 in 2022. The company has accounting income of $360,000 in 2019. As of the beginning of 2019, the enacted tax rate is 30% for all years. Crispin expects to report taxable income through the foreseeable future. Instructions (12 marks) (4.1) Calculate the taxable income for 2019 for Crispin Corp. Please show your work and differentiate between permanent and reversing differences as this helps me give part marks if a mistake is made. (4.2) Prepare Crispins journal entry to report current and deferred income tax expense for 2019. (4.3) Indicate how Crispins deferred income taxes would be reported on the statement of financial position at the end of 2019 assuming the company follows IFRS. (4.4) At the beginning of 2020, the government announced that the tax rate for 2021 and 2022 would be changing to 35%. Prepare Crispins journal entry to reflect this change. 4.5 Unrelated to the above, Honeycrisp Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: Year Accounting Income (Loss) Tax Rate 2018 $ 90,000 25% 2019 30,000 27% 2020 (150,000) 30% 2021 100,000 30% The tax rates listed were all known by the beginning of 2020. Honeycrisp reports under the ASPE future/deferred income taxes method but does not use an allowance account. Instructions (3 marks) Prepare the journal entries for 2020 to record income tax. Assume the tax loss is first carried back and that at the end of 2020, the loss carryforward benefits are judged more likely than not to be realized in the future.