QUESTION DATA: Elegant Flowers Inc (EFI) began operations in 2018. You, senior accountant of EFI, are working on the 2020 year's DEFERRED tax calculation and noted the following information: (1). The tax rate for 2018 and 2019 was 30%. A new tax rate of 25% was enacted into law on August 1, 2020 for 2020 and later. As a publically accountable enterprise, EFI follows IFRS. 12). Eft purchased toy manufacturing equipment on lanuary 1, 2018 for $1,000,000. EFI depreciates the equipment for accounting purposes using a straight-line basis or $92,500 per year. CCA for 2020 was $144,000. In prior years, cumulative CCA exceeded cumulative depreciation expense by $95,000 (3). On December 31, 2018, EFI paid $270,000 in advance for a three-year advertising campaign with a national toy store. The advertising campaign covers the period January 1, 2019 - December 31, 2021. The entire $270,000 was deducted as an expense for tax purposes in 2018 (4). Estimated losses of $80,000 on a pending lawsuit and claim were accrued for financial reporting purposes during the year ended December 31, 2020. These losses are tax deductible in the period when the related liability is settled. Legal counsel expects the lawsuit to be settled in the summer of 2021. (1). Complete the schedule below to calculate deferred income tax expense for the year ended December 31, 2020. All blue cells are to be completed. If a cells zero, use o rather than leaving blank. The subtotal formulas for accounting and tax to date are entered for you and will be updated automatically when you enter data above the subtotal. ITEM DR/(CR) Year Acctg to date Tax to date Deductible/ (Tascable) Temporary Difference Rate Deferred Tax Asset/ (Liability) Toy Manufacturing equipment 95,000 30% Jan. 1/20 2020 Dec 31/20 95,000 25% Advertising campaign 2018 2019 Jan. 1/20 2020 Dec 31/20 30% Lawsuit Jan 1/20 2020 Dec 31/20 25% (2). Prepare all appropriate journal entries to record the 2020 deferred income taxes for EF. Follow the journal entry descriptions to help with the journal entry order. Account Title Debit Date 2 Dec 31/20 Credit Record deferred income taxes on toy equipment Dec. 31/20 3 Record deferred income taxes on Advertising campaign Dec. 31/20 Record deferred income taxes on pending lawsuit 31. What account and amount will appear on EF's Income statement for the year ending December 31, 20207 Use the drop-dow boxes to select the appropriate account name. Account name Amount $ (4). What account and amount will appear on Efl's Statement of Financial Position as at December 31, 2020? Use the drop-down boxes to select the appropriate account name under the dassification provided. Classification Account Name Amount (5) QUESTION DATA: Elegant Flowers Inc (EFI) began operations in 2018. You, senior accountant of EFI, are working on the 2020 year's DEFERRED tax calculation and noted the following information: (1). The tax rate for 2018 and 2019 was 30%. A new tax rate of 25% was enacted into law on August 1, 2020 for 2020 and later. As a publically accountable enterprise, EFI follows IFRS. 12). Eft purchased toy manufacturing equipment on lanuary 1, 2018 for $1,000,000. EFI depreciates the equipment for accounting purposes using a straight-line basis or $92,500 per year. CCA for 2020 was $144,000. In prior years, cumulative CCA exceeded cumulative depreciation expense by $95,000 (3). On December 31, 2018, EFI paid $270,000 in advance for a three-year advertising campaign with a national toy store. The advertising campaign covers the period January 1, 2019 - December 31, 2021. The entire $270,000 was deducted as an expense for tax purposes in 2018 (4). Estimated losses of $80,000 on a pending lawsuit and claim were accrued for financial reporting purposes during the year ended December 31, 2020. These losses are tax deductible in the period when the related liability is settled. Legal counsel expects the lawsuit to be settled in the summer of 2021. (1). Complete the schedule below to calculate deferred income tax expense for the year ended December 31, 2020. All blue cells are to be completed. If a cells zero, use o rather than leaving blank. The subtotal formulas for accounting and tax to date are entered for you and will be updated automatically when you enter data above the subtotal. ITEM DR/(CR) Year Acctg to date Tax to date Deductible/ (Tascable) Temporary Difference Rate Deferred Tax Asset/ (Liability) Toy Manufacturing equipment 95,000 30% Jan. 1/20 2020 Dec 31/20 95,000 25% Advertising campaign 2018 2019 Jan. 1/20 2020 Dec 31/20 30% Lawsuit Jan 1/20 2020 Dec 31/20 25% (2). Prepare all appropriate journal entries to record the 2020 deferred income taxes for EF. Follow the journal entry descriptions to help with the journal entry order. Account Title Debit Date 2 Dec 31/20 Credit Record deferred income taxes on toy equipment Dec. 31/20 3 Record deferred income taxes on Advertising campaign Dec. 31/20 Record deferred income taxes on pending lawsuit 31. What account and amount will appear on EF's Income statement for the year ending December 31, 20207 Use the drop-dow boxes to select the appropriate account name. Account name Amount $ (4). What account and amount will appear on Efl's Statement of Financial Position as at December 31, 2020? Use the drop-down boxes to select the appropriate account name under the dassification provided. Classification Account Name Amount