Patio Co. began operations in 2018 and follows IFRS. You senior accountant of Patio Co, are working on the 2020 year's tax calculation and noted the following information: g (1). The tax rate for 2018 and 2019 was 30%. The tax rate for 2020 and future years is 25%. The new rate was enacted in November, 2020 and was unknown prior to that date, 10 11 12 (2) The company began operations in 2018 and the following are differences between accounting and taxable income: 13 14 15 2018 2019 2020 16 17 18 19 Item Reported on income statement: Estimated warranty expense Depreciation expense Non-deductible expenses Non-taxable income Advertising expense (see note 3) $18,000 $27,000 $43,000 48,000 48,000 48,000 2,000 5,000 8,000 5,000 8,000 6,700 37,500 20 21 22 Reported on tax return: 23 Actual warranty costs incurred $15,000 $20,000 $50,000 24 Capital cost allowance 32,000 57,000 60,000 25 Advertising costs (see note 3) 75,000 26 (3). Patio Co, signed a two-year advertising service with the local radio station on January 1, 2020 for the period January 1, 2020 to December 31, 2021. The total fees of $75,000 were paid on January 27 1, 2020. 28 (4). The warranty covers all parts and labor for a one-year time period. (5). For the year-ended December 31, 2020, Patio Co. reported a $500,000 accounting income before income tax expense. This amount includes a before tax loss from discontinued operations of $50,000, of which only one-half is tax deductible. C OCTOthere is not formar MMA. Martens DRIO TAX QUERAL ENTRIES TEM Defend to ALDRO TAK HEDULES Dede ) Andate Texto dete Try Die 2011 2019 In 120 CCA Der One Det. 17 Account Title 2020 De Credit Dec 1/20 DR/ICA Acetato date Tax to de Deductible Taxabled Temporary Difference Rate Deferred Tex Asset / fiability Warranty 2010 2019 Jan. 1/20 2020 Dec 31201 Account Title DINE Dec. 31/20 Detin Credit DR/(CR) Year Acct to date Tax to date Deductible/ (Taxable) Temporary Difference Rate Deferred Tax Asset/ (Liability Advertising 2018 2019 Jan. 1/20 2020 Dec. 31/201 Account Title Date Dec 31/20 Debit Credit Required 19 PRESENTATION OF DEFERRED TAKES + What accounts AND amounts would Patio Cos report on its December 31, 2020 financial statements associated with deferred income taxes ONLY? Complete the appropriate tables below. From the drop-down boxes provided, select the appropriate account name and dassification. Show debits as positive numbers and credits as negative numbers Statement of Profit/Loss Account name Amount (5) Statement of Financial Position Classification Account name Amount
