Grouper Corporation purchased equipment very late in 2020. Based on generous capital cost allowance rates provided in the Income Tax Act, Grouper Corporation claimed CCA on its 2020 tax return but did not record any depreciation because the equipment was being tested. This temporary difference will reverse and cause taxable amounts of $28,600 in 2021, $37,700 in 2022, and $46,000 in 2023. Groupers accounting income for 2020 is $242,600 and the tax rate is 30% for all years. There are no deferred tax accounts at the beginning of 2020.

Calculate the deferred tax balance at December 31, 2020.

Deferred tax select an option liabilityasset

$enter a dollar amount

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List of Accounts

Calculate taxable income and income tax payable for 2020.

Taxable income		$enter a dollar amount
Income tax payable		$enter a dollar amount

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List of Accounts

Prepare the journal entries to record income taxes for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Year	Account Titles and Explanation	Debit	Credit
2020	enter an account title to record current tax expense	enter a debit amount	enter a credit amount
	enter an account title to record current tax expense	enter a debit amount	enter a credit amount
	(To record current tax expense)
2020	enter an account title to record deferred tax expense	enter a debit amount	enter a credit amount
	enter an account title to record deferred tax expense	enter a debit amount	enter a credit amount
	(To record deferred tax expense)

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List of Accounts

Prepare the income tax expense section of the income statement for 2020, beginning with the line Income before income tax.

Grouper Corporation (Partial) Income Statement choose the accounting period December 31, 2020For the Month Ended December 31, 2020For the Year Ended December 31, 2020
select an income statement item Deferred Tax AssetIncome Tax Expense - CurrentNet Income / (Loss)Income Tax Expense - DeferredIncome Before Income TaxDeferred Tax LiabilityCurrent Income Tax Benefit				$enter a dollar amount
select an income statement item Income Tax Expense - CurrentDeferred Tax LiabilityDeferred Tax AssetIncome Before Income TaxNet Income / (Loss)Current Income Tax BenefitIncome Tax Expense - Deferred		$enter a dollar amount
select an income statement item Deferred Tax LiabilityNet Income / (Loss)Income Tax Expense - CurrentCurrent Income Tax BenefitIncome Tax Expense - DeferredIncome Before Income TaxDeferred Tax Asset		enter a dollar amount
				enter a subtotal of the two previous amounts
select a closing name for this statement Income Before Income TaxDeferred Tax AssetIncome Tax Expense - CurrentDeferred Tax LiabilityCurrent Income Tax BenefitIncome Tax Expense - DeferredNet Income / (Loss)				$enter a total net income or loss amount