Hello,

I need help with the following:

How do I calculate Ashton's Art Emporium Inc.'s income tax expense for 2018 with the current and deferred portions.

How do I do a reconciliation of Ashton's Art Emporium Inc.'s accounting income at the income tax rate with its income tax expense for 2018.

What balances, related to income taxes, will appear on the statement of financial position of Ashton's Art Emporium Inc. as at December 31, 2018?

If the company reports in compliance with IFRS and with ASPE and elects to use the accrual method of accounting for income taxes.

Ashton's Art Emporium Inc. provided the following calculation of taxable income for its 2018 fiscal year:

In 2017, the company reported a non-capital loss of $100,000 and carried $50,000 back, resulting in a recovery of $16,000.The balance of the tax loss benefit was considered to be realizable and a deferred tax asset of $16,000 was set up at the end of that year.The only other deferred income tax balances at the end of 2017 were a $6,400 deferred asset balance relating to the warranty provision of $20,000 at December 31, 2017, and a deferred income tax liability of $48,000 relating to the difference between the net book value of the company's capital assets of $508,000 and its Undepreciated Capital Cost for income tax amounting to $358,000.

Amortization expense for 2018 amounted to $50,000 and Capital Cost Allowance claimed was $134,000.

The income tax rate for 2018 of 32% was known when the 2017 financial statements were prepared.The enacted rate for 2019 is known to be 35%.