Orbit Systems Inc. started operations in 2018 and uses IFRS. The following financial information was provided to you, reported as of December 31, 2019:

Orbit Systems, Inc. 2019

Revenues	$800
Depreciation expense	150,000
Other operating expenses	520,000
Property, Plant and Equipment, cost	1,400,000
Accumulated depreciation	230,000
Unearned rent revenue	40,000

Additional information:

●Orbit Systems has a tax rate of 25% in 2018, 30% in 2019, and 35% in 2020 enacted in February each year.

●Orbit Systems claimed a total capital cost allowance for tax purposes of $255,000 in 2018 and $160,000 in 2019.

●In 2018 Orbit Systems sold an excess parcel of land for an amount of $500,000, generating a gain of $200,000. The receipt of cash from this sale was a 30% down payment with the balance to be received, 40% in 2019 and 30% in 2020. However, this gain is taxed in the year it is received.

●The unearned rent revenue represents cash received in 2019 from a tenant who will be moving into the building on February 1, 2020, and relates to rent due in 2020. For tax purposes, any cash received for future rent is taxed when the cash is received.

●Revenue in 2019 includes dividends received from taxable Canadian corporations of $10,000 and is not taxable.

Required:

1. Prepare all tax-related journal entries to record income taxes for 2019. Show in detail computations to support your answers.

2. What are the deferred tax amounts to report on the balance sheet for years ended December 31, 2018, and 2019 and how would they be classified? If ASPE was used how would they be classified?

3. Prepare the income statement beginning with “income before taxes” for 2019.

4. For this part only, assuming that in 2018 a taxable loss of $500,000 was incurred. What journal entries or entries done in parts 1 -3 above would be changed, added, or removed? Assume that in 2018, the loss was considered to be likely to be applied against future taxable incomes.