Question 2: Income Tax (20 marks) Accounting Income (loss) Year 1 Year 2 $165,000 $345,000 Depreciation is $20,000 per year. CCA is $18,000 in year 1, $25,000 in year 2 Warranty expense accrued is as follows $8,000 in year 1, $10,000 in year 2 Actual warranty claims paid: $5,000 in year 1, $10,000 in year 2 Golf Dues equal to $10,000 per year was paid each year. Tax rates are 25% for all years Required: SHOW YOUR CALCULATIONS. 1. Calculate Taxable Income and Income tax payable. Prepare the tax reconciliations for both years (6 marks) 2. If in year 3 there was a tax loss of $720,000 answer the following: what is loss carryback? What is Loss carryforward? What is the refund? What is the tax benefit? (4 marks) 3. Prepare the tax journal entries for all three years assuming IFRS (10 marks)