P18.8 Sarah Corp. reported the following differences between SFP carrying amounts and tax bases at December 31, 2019:

		Carrying Amount		Tax Base
Depreciable assets		$100,000		$67,500
Warranty liability (current liability)		20,500		0
Pension liability (long-term liability)		38,800		0

The differences between the carrying amounts and tax bases were expected to reverse as follows:

		2020		2021		After 2021
Depreciable assets		$17,500		$12,500		$2,500
Warranty liability		20,500		0		0
Accrued pension liability		12,000		12,000		14,800

Tax rates enacted at December 31, 2019, were 31% for 2019, 30% for 2020, 29% for 2021, and 28% for 2022 and later years.

During 2020, Sarah Corp. made four quarterly tax instalment payments of $9,500 each and reported income before income tax on its income statement of $119,650. Included in this amount were dividends from taxable Canadian corporations of $5,800 (non-taxable income) and $25,000 of expenses related to the executive team's golf dues (nontax-deductible expenses). There were no changes to the enacted tax rates during the year.

As expected, book depreciation in 2020 exceeded the capital cost allowance claimed for tax purposes by $17,500, and there were no additions or disposals of property, plant, and equipment during the year. A review of the 2020 activity in the Warranty Liability account in the ledger indicated the following:

Balance, Dec. 31, 2019		$20,500
Payments on 2019 product warranties		(21,200)
Payments on 2020 product warranties		(6,300)
2020 warranty accrual		30,480
Balance, Dec. 31, 2020		$23,480

All warranties are valid for one year only. The Pension Liability account reported the following activity:

Balance, Dec. 31, 2019		$38,800
Payment to pension trustee		(72,000)
2020 pension expense		60,000
Balance, Dec. 31, 2020		$26,800

Pension expenses are deductible for tax purposes, but only as they are paid to the trustee, not as they are accrued for financial reporting purposes.

Sarah Corp. reports under IFRS.

Instructions

a. Calculate the Deferred Tax Asset or Deferred Tax Liability account at December 31, 2019, and explain how it should be reported on the December 31, 2019 SFP.

b. Calculate the Deferred Tax Asset or Deferred Tax Liability account at December 31, 2020.

c. Prepare all income tax entries for Sarah Corp. for 2020.

d. Identify the balances of all income tax accounts at December 31, 2020, and show how they will be reported on the comparative statements of financial position at December 31, 2020 and 2019, and on the income statement for the year ended December 31, 2020.

e. How would your responses to parts (a) and (d) change if Sarah Corp. followed the ASPE future/deferred income taxes method?

please use accelerated investment incentive, not half rule