Lantz Ltd. reported earnings before income taxes of $730,000 in 20X5. The company had expensed $44,000 of golf club dues that were not tax-deductible. There was tax-free dividend revenue of $19,500. Warranty expense was $59,000. Depreciation was $139,000, while CCA was $255,000. Warranty claims paid were $44,500. The tax rate for this year is 20%. Required: Calculate taxable income and income tax payable. Taxable income Income tax payable Parry Corp. acquired new equipment for $5,100,000 in 20X6. For accounting purposes, the equipment will be depreciated over five years, straight-line, with a full year's depreciation in the first year. For income tax purposes, Parry can take CCA over the next three years of $315,000 in 20X6, $567,000 in 20X7, and $456,750 in 20X8. Parry's income tax rate is 36%. Required: For each 31 December 20X6 through 20X8, determine: (Enter your answers in thousands to two decimal places.) 1. The tax basis for the equipment. 20X6 20X7 20X8 Tax basis 2. The accounting basis for the equipment. 20X6 20X7 20X8 Accounting basis 3. The cumulative amount of the temporary difference relating to the equipment. Temporary difference 20X6 20X7 20X8 4. The balance of deferred income tax asset or liability that would be reported on the statement of financial position. Deferred income tax balance 20X6 20X7 20X8 5. The amount of the deferred income tax adjustment. Deferred income tax Adjustment 20X6 20X7 20x8