• Fast Lane Corp has earnings before taxes of $630,000 for 2018. These earnings include:
• Golf club dues = $19,500
• Accrued warranty costs = 54,000
• Depreciation = 69,500
• Actual warranty costs incurred = 39,500
• CCA = 139,000
• The capital assets, originally costing $695,000, are depreciated on a straight-line basis over 10 years, zero residual value, with a full year of depreciation taken in year 1.
• The tax rate is 38%

1. Calculate Income Tax Payable

2. Calculate deferred income tax