Flounder Corporation purchased equipment very late in 2017. Based on generous capital cost allowance rates provided in the Income Tax Act, Flounder Corporation claimed CCA on its 2017 tax return but did not record any depreciation because the equipment had not yet been put into use. This temporary difference will reverse and cause taxable amounts of $31,200 in 2018, $39,700 in 2019, and $42,300 in 2020. Flounder’s accounting income for 2017 is $242,400 and the tax rate is 31% for all years. There are no deferred tax accounts at the beginning of 2017.

A. Calculate the deferred tax balance at December 31, 2017.

B. Calculate taxable income and income tax payable for 2017.