Prepare journal entries to record all tax related effects for 2020 and 2021. All supporting calculations should be shown.

On January 1, 2016, Drugz Inc., a large pharmaceutical company, commenced business operations in Canada. The following information is available: ] ] 1 The tax rates for any given year is known by the company during the previous year. Thus for example, the tax rate for 2020 will be known during 2021. [This should read as : for 2021 will be known during 2020.] Assume that the company carries back all its losses first. Further in 2021, it is judged more likely than not that the company will generate taxable incomes in future years