Pina Colada Engines Ltd., a private business following ASPE, operates small engine repair outlets and is a tenant in several of Tran Holdings Inc. strip shopping mall. Pina Colada ned several renewals with tran that each called for a three-month rent free period. The leases start at various dates and are for three to five years each. As with all of Tran tenants, Pina Colada parent quarterly three months in advance, and records the payments initially to Prepaid Rent The rent free period obtained in the lease reement with Tran Holdings Inc, reduces the overall rental costs of the outlets over the term of each eas Pina Colada accounting policys the costs of each outlet to be allocated evenly over the term of the lease to fairly match expenses with revenues. Pina Colada accrues rent expense during the rent free period to an account called me Payable Following the rent free period, the Rent poble account is amortured to Rent Expense over the remaining term of the lease for tax purposes, Pina Colada must use the cash basis and to deduct the rent expense accrued during the rent free periods on its tax retum, Pina Colada can deduct the actual rent payments only when they are made The following are balances for the accounts related to preparent and rent payable under cases as well as payments for interest to earn exempt income and payments for oldub dues for the years ended December 31, 2021 and 2020: 2021 2020 Prepaid Rent (assure current assification and no balance at Dec 31, 2019) 592,200 $89,200 Rent Payable (assume non current classification and no balance at Dec 31, 2019) 132,600 145,500 Golf Dues Expense 11,200 13,300 Interest Expense (incurred to earn tax-exempt income) 7,200 4,300 In 2020, Pina Colada's tax rate is 26%, and for subsequent years it is 27%. Income before income tax for the year ended December 31, 2020 was $87.000. During 2021, Pina Coladate changed to 29% for 2021 and subsequent years, Income before income tax for the year ended December 31, 2021 was $979,000 Calculate the Future Tax Asset or Future Tax Liability account balances at December 31, 2020 and 2021. legative to the negative in preceding the parenthesese.. (45).) 2020 2021 Pina Colada Engines Ltd., a private business following ASPE, operates small engine repair outlets and is a tenant in several of Tran Holdings Inc. strip shopping mall. Pina Colada ned several renewals with tran that each called for a three-month rent free period. The leases start at various dates and are for three to five years each. As with all of Tran tenants, Pina Colada parent quarterly three months in advance, and records the payments initially to Prepaid Rent The rent free period obtained in the lease reement with Tran Holdings Inc, reduces the overall rental costs of the outlets over the term of each eas Pina Colada accounting policys the costs of each outlet to be allocated evenly over the term of the lease to fairly match expenses with revenues. Pina Colada accrues rent expense during the rent free period to an account called me Payable Following the rent free period, the Rent poble account is amortured to Rent Expense over the remaining term of the lease for tax purposes, Pina Colada must use the cash basis and to deduct the rent expense accrued during the rent free periods on its tax retum, Pina Colada can deduct the actual rent payments only when they are made The following are balances for the accounts related to preparent and rent payable under cases as well as payments for interest to earn exempt income and payments for oldub dues for the years ended December 31, 2021 and 2020: 2021 2020 Prepaid Rent (assure current assification and no balance at Dec 31, 2019) 592,200 $89,200 Rent Payable (assume non current classification and no balance at Dec 31, 2019) 132,600 145,500 Golf Dues Expense 11,200 13,300 Interest Expense (incurred to earn tax-exempt income) 7,200 4,300 In 2020, Pina Colada's tax rate is 26%, and for subsequent years it is 27%. Income before income tax for the year ended December 31, 2020 was $87.000. During 2021, Pina Coladate changed to 29% for 2021 and subsequent years, Income before income tax for the year ended December 31, 2021 was $979,000 Calculate the Future Tax Asset or Future Tax Liability account balances at December 31, 2020 and 2021. legative to the negative in preceding the parenthesese.. (45).) 2020 2021