KWI Incorporated began operations in 2019. The summarized financial statements of KWI reflected the following pre-tax amounts for its December 31 year end:

			2019	2020
Income statement
Revenue			$420,000	$500,000
Depreciation expense			52,000	52,000
Golf club dues				10,000
Other operating expenses			231,000	252,000
Pre-tax accounting income			137,000	186,000
Balance sheet
Development costs				60,000
Equipment			$520,000	$520,000
Accumulated amortization			(52,000)	(104,000)
			468,000	476,000

KWI has a tax rate of 22% in 2019 and 25% in 2020; rates are enacted in February each year. Development costs meet the criteria for capitalization for accounting purposes. For tax purposes, development costs are fully deducted. CCA for income tax purposes was claimed as follows: 2019, $26,000, 2020, $49,400. KWI follows IFRS.

Required:

1. For 2020, calculate the income taxes payable. (3 marks)

2. For each year (2019 and 2020), calculate the deferred income tax adjustment at the end of each year. (4 marks)

3. Prepare the required entry to record income tax expense for 2020. (3 marks)

4. When can a company report deferred income taxes relating to all temporary differences at a single net amount on the statement of financial position? (1 mark)