Novak Tarand Gravel Ltd. operates a road construction business. In its first year of operations, the company obtained a contract to construct a road for the municipality of Cochrane West, and it is estimated that the project will be completed over a three-year period starting in June 2020. Novak uses the percentage-of-completion method of recognizing revenue on its long-term construction contracts. For tax purposes, and in order to postpone the tax on such revenue for as long as possible, Novak uses the completed- contract method allowed by the CRA. For the second year of operations. Novak made progress on the construction of the road for the municipality. The account balances at December 31, 2020 and 2021, for the construction project and the accounting and tax balances of accounts related to the equipment used for construction follow: 2020 Accounts Receivable $320,000 2021 $113,000 139.000 431.000 Asset/Liability (net of billings to date of $792,000 and $400,000) 100,000 Revenue from Long-Term Contracts 500,000 421.000 350,000 Construction Expenses 1,100,000 Equipment 1.100.000 172,000 453,000 Accumulated Depreciation Equipment 617.000 980,000 Undepreciated Capital Cost Novak's tax rate was 25% in 2020 and 2021. The enacted tax rate for 2022 and subsequent years was reduced to 20% on September 15, 2021. Income before income tax for the year ended December 31, 2020, was $195,000 and for December 31, 2021. was $121.000. Novak reports under IFRS