$$Jenny Corporation recorded warranty accruals as at December $31,2019,$ in the amount of $$150,000.$ This reversing difference will cause deductible amounts of $$55,000$ in $2020,$$$\mathrm{}45,000$ in $2021,$ and $$6\mathrm{}9,000$ in $2022.$ Jenny's accounting income for $2019$ is $$135,000$ and the tax rate is $25\%$ for all years. There are no future tax accounts at the beginning of $2019.$ 

 

The Corporation uses IFRS.

Instructions:

$($a$)$ Calculate the deferred income tax balance at December $31,2019.$

$($b$)$ Calculate taxable income and current income taxes payable for $2019.$

$($c$)$ Prepare the journal entries to record income taxes for $2019.$

$($d$)$ Prepare the income tax expense section of the income statement for $2019,$ beginning with the line "Income before income taxes."

B$)$ Use the information for Jenny Corporation in Part A$,$ and assume that the company reports accounting income of $$155,000$ in each of $2021$ and $2022$ and the warranty expenditures occurred as expected. No reversing difference exists other than the one identified in Part A$.$

Instructions:

$($a$)$ Calculate the deferred income tax balances at December $31,2021$ and $2022.$

$($b$)$ Calculate taxable income and income taxes payable for $2021$ and $2022.$

$($c$)$ Prepare the journal entries to record income taxes for $2021$ and $2022.$

$($d$)$ Prepare the income tax expense section of the income statements for $2021$ and $2022,$ beginning with the line "Income before income taxes." HERE IS PART A