Pina Colada Limited had investments in securities on its statement of financial position for the first time at the end of its fiscal year ended December 31, 2020. Pina Colada reports under IFRS and its investments in securities are to be accounted for at fair value through net income. During 2020, realized losses and gains on the trading of shares and bonds resulted in investment income, which is fully taxable in the year. Pina Colada also accrued unrealized gains at December 31, 2020, which are not taxable until the investment securities are sold. The portfolio of trading securities had an original cost of $316,250 and a fair value on December 31, 2020, of $320,250. The entry recorded by Pina Colada on December 31, 2020 was as follows:

FV-NI Investments			4,000
	Investment Income or Loss				4,000

Following the year ended December 31, 2020, Pina Colada continued to actively trade its securities investments until the end of its 2021 fiscal year, when it was forced to sell several of them at a loss, because of the need for cash for operations. By December 31, 2021, the portfolio of investments contained a single investment in shares, which was purchased in November 2021. Pina Colada Limited had paid $44,300 for these remaining shares. At December 31, 2021, the shares market value was $42,200. Income before income tax for Pina Colada was $123,500 for the year ended December 31, 2021. There are no other permanent or reversing/timing differences in arriving at the taxable income for Pina Colada Limited for the fiscal year ended December 31, 2021. The enacted tax rate for 2021 and future years is 30%.

Prepare the necessary journal entry for Pina Colada Limited to accrue the unrealized loss on its securities investments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2021
	(To record fair value adjustment)

Calculate the deferred tax balance at December 31, 2021.

Deferred tax Choose the answer from the menu in accordance to the question statement assetliability

$Enter your answer in accordance to the question statement

Calculate the current tax expense for the year ended December 31, 2021.

Current tax expense

$Enter your answer in accordance to the question statement

Prepare the journal entries to record income taxes for 2021. Assume that there have been no entries to the ending balances of deferred taxes reported at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Year	Account Titles and Explanation	Debit	Credit
2021
	(To record current tax expense)
2021
	(To record deferred tax benefit)

Prepare the income statement for 2021, beginning with the line Income before income tax.

Pina Colada Limited (Partial) Income Statement For the Year Ended December 31, 2021December 31, 2021For the Month Ended December 31, 2021
Current Income Tax BenefitIncome Tax Expense - CurrentNet Income / (Loss)Deferred Tax BenefitDeferred Tax LiabilityIncome Before Income TaxDeferred Tax Asset				$
Current Income Tax BenefitIncome Before Income TaxIncome Tax Expense - CurrentDeferred Tax LiabilityDeferred Tax AssetDeferred Tax BenefitNet Income / (Loss)		$
Current Income Tax BenefitIncome Before Income TaxNet Income / (Loss)Income Tax Expense - CurrentDeferred Tax BenefitDeferred Tax AssetDeferred Tax Liability
Income Before Income TaxNet Income / (Loss)Deferred Tax LiabilityDeferred Tax BenefitIncome Tax Expense - CurrentCurrent Income Tax BenefitDeferred Tax Asset				$

Provide the presentation for the SFP for any resulting deferred tax accounts at December 31, 2021.

Pina Colada Limited (Partial) Balance Sheet For the Year Ended December 31, 2021December 31, 2021For the Month Ended December 31, 2021
Shareholders' EquityNon-Current LiabilitiesCurrent AssetsCurrent LiabilitiesNon-Current AssetsFixed Assets
		$

Prepare the journal entries to record income tax for 2021. Assume that, late in 2021, the income tax rate changed to 25% for 2022 and subsequent years. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Year	Account Titles and Explanation	Debit	Credit
2021
	(To record current tax expense)
2021
	(To record deferred tax benefit)

Provide the presentation for the statement of financial position for any resulting deferred tax accounts at December 31, 2021. Assume that Pina Colada reports under the ASPE future/deferred income taxes method and has chosen the fair value through net income model to account for its securities investments. Assume the tax rate is 30%.

Pina Colada Limited (Partial) Balance Sheet For the Year Ended December 31, 2021December 31, 2021For the Month Ended December 31, 2021
Shareholders' EquityNon-Current AssetsCurrent LiabilitiesFixed AssetsCurrent AssetsNon-Current Liabilities
		$