Question 1 The following information is available for Blue Spruce Corporation for 2020. 1. CCA that was reported on the 2020 tax return exceeded depreciation reported on the income statement by $121,600. This difference is expected to reverse in equal amounts of $30,400 per year over the period 2021 to 2024. 2. Dividends received from taxable Canadian corporations were $17,480. 3. Rent collected in advance on January 1, 2020 totalled $68,400 for a three-year period. Of this amount, $45,600 was reported as unearned for book purposes at December 31, 2020. 4. The tax rates are 25% for 2020 and 30% for 2021 and subsequent years. 5. Income taxes payable are $152,000 for 2020.

Collapse question part (a) Calculate taxable income. Taxable income