*NOTE: LONG ANSWER QUESTIONS MUST BE SUBMITTED SEPERATELY THROUGH THE MOODLE LINK PROVIDED NO RESPONSE ENTERED HERE WILL BE MARKED. YOU MUST USE THE WORD AND/OR EXCEL TEMPLATES PROVIDED. YOU MAY SUBMIT 1) THE COMPLETED WORD AND/OR EXCEL DOCUMENTS OR 2) PRINT THE WORD AND/OR EXCEL TEMPLATES, COMPLETE BY HAND, AND SUBMIT YOUR SCANNED RESPONSE* *LONG ASWER QUESTION 6-YOUR HIGHEST TWO MARKS OF LONG ANSWER QUESTIONS 4-6 WILL BE COUNTED IN YOUR GRADE (Unless adding your 3rd question improves your grade - in which case it will be included) - IT'S RECOMMENDED YOU ATTEMPT ALL 3 HOWEVER YOU MAY ATTEMPT JUST 2 of QUESTIONS 4-6 IF YOU ARE TIME PRESSURED The following are two independent situations related to future taxable and deductible amounts that resulted from temporary differences at December 31, 2020. In both situations, the future taxable amounts relate to property, plant, and equipment depreciation, and the future deductible amounts relate to settlements of litigation that were previously accrued in the accounts. 1. Agassi Corp. has developed the following schedule of future taxable and deductible amounts: 2021 2022 2023 2024 2025 Taxable amounts $600 $600 $600 $400 $200 Deductible amounts 0 0 (3,600 ) 0 Agassi reported a net deferred tax liability of $1,040 at January 1, 2020. 2. Ned Corp. has the following schedule of future taxable and deductible amounts: 2021 2022 2023 2024 Taxable amounts $1,000 $1,000 $1,000 $1,000 Deductible amounts 0 0 (7,000 ) 0 Ned Corp. reported a net deferred tax asset of $1,360 at January 1, 2020. Both Agassi Corp. and Ned Corp. have taxable income of $8,200 in 2020 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2020 are 25% for 2020 to 2023, and 30% for 2024 and subsequent years. All of the underlying temporary differences relate to non- current assets and liabilities. Both Ned and Agassi report under IFRS. Required: 1) Determine the deferred tax assets or liabilities that will be reported on each company's December 31, 2020, SFP. 2) For each of these two situations, prepare journal entries to record income taxes for 2020.