Question 1 The Hassan Corporation is a publicly accountable entity with a December 31 year end. Data for the year ended December 31, 20x3 is as follows: $4,180,000 540,000 720,000 850,000 Net income before taxes Depreciation expense CCA Additions to PPE Disposal of PPE - Carrying value of asset sold Proceeds on disposal Original cost of asset sold Entertainment expenses Warranty expense Warranty costs incurred Pension expense Contributions to the pension fund Dividends received from taxable Canadian Corporations ROU asset - Lease payment Depreciation expense on leased asset (not included in depreciation expense above) Interest expense Revenues included in the calculation of NIBT for the year but will be taxable in 20x4 Club dues 360,000 300,000 450.000 65,000 490,000 375,000 380,000 310,000 24,000 128,000 35,000 49,000 210,000 31,000 2 The deferred income tax account as at December 31, 20x2 included three temporary differences: difference between the carrying value of assets of $4,980,000 and their UCC of $2,210,000 warranty liability of $640,000 pension liability of $70,000 The lease was entered into on March 31, 20x3. The tax rate for the year ended December 31, 20x2 was 29%. The tax rate for the year ended December 31, 20x3 is 30% (this rate was not known on December 31, 20x2) and the tax rate for the year ended December 31, 20x4 was enacted in December 20x3 and will be 26%