Question The following information relates to Swifty Corporation's transactions during 2020, its first year of operations. 1. Income before income tax on the income statement for 2020 was $66,000 2. Income before income tax (566,000 above) is net of loss due to the writedown of land of $40,000 3. Swifty reported a tax deductible financing charge of $5,500 on its 2020 statement of retained earnings. The charge is for interest on a financial instrument that is legally debt, but in substance is equity for financial reporting purposes. 4. The tax rate enacted for 2020 and future years is 30%. Because this was Swifty Corporation's first taxation year, no instalments on account of income taxes were required or paid by Swilty 5. Differences between the 2020 GAAP amounts and their treatment for tax purposes were as follows: (a) Warranty expense accrued for financial reporting purposes amounted to $14,000. Warranty payments deducted for takes amounted to $11,200. Warranty labilities were classified as current on the SER (b) of the loss on writedown of land of $48,000, 25% will never be tax deductible. The remaining 75% will be deductible for tax purposes evenly over the years from 2021 to 2023. The loss relates to the loss in value of company land due to contamination (c) Gross profit on construction contracts using the percentage of completion method for book purposes amounted to $29,900. For tax purposes, gross profit on construction contracts amounted to $0 because the completed contract method is used and no contracts were completed during the year. Construction costs amounted to $259,000 during the year (d) Depreciation of property, plant, and equipment for financial reporting purposes amounted to $64,200. CCA charged on the tax return amounted to $85,600. The related property, plant, and equipment cost $321,000 when it was acquired early in 2020, (e) A $3,200 fine paid for a violation of pollution laws was deducted in calculating accounting income (1) Dividend revenue earned on an investment was tax exempt and amounted to $1,400 6. Taxable income is expected for the next few years Swifty Corporation follows IFRS Your answer has been saved and sent for grading See Gradebook for score details Calculate Swifty Corporation's deferred tax asset or liability at December 31, 2020. Question The following information relates to Swifty Corporation's transactions during 2020, its first year of operations. 1. Income before income tax on the income statement for 2020 was $66,000 2. Income before income tax (566,000 above) is net of loss due to the writedown of land of $40,000 3. Swifty reported a tax deductible financing charge of $5,500 on its 2020 statement of retained earnings. The charge is for interest on a financial instrument that is legally debt, but in substance is equity for financial reporting purposes. 4. The tax rate enacted for 2020 and future years is 30%. Because this was Swifty Corporation's first taxation year, no instalments on account of income taxes were required or paid by Swilty 5. Differences between the 2020 GAAP amounts and their treatment for tax purposes were as follows: (a) Warranty expense accrued for financial reporting purposes amounted to $14,000. Warranty payments deducted for takes amounted to $11,200. Warranty labilities were classified as current on the SER (b) of the loss on writedown of land of $48,000, 25% will never be tax deductible. The remaining 75% will be deductible for tax purposes evenly over the years from 2021 to 2023. The loss relates to the loss in value of company land due to contamination (c) Gross profit on construction contracts using the percentage of completion method for book purposes amounted to $29,900. For tax purposes, gross profit on construction contracts amounted to $0 because the completed contract method is used and no contracts were completed during the year. Construction costs amounted to $259,000 during the year (d) Depreciation of property, plant, and equipment for financial reporting purposes amounted to $64,200. CCA charged on the tax return amounted to $85,600. The related property, plant, and equipment cost $321,000 when it was acquired early in 2020, (e) A $3,200 fine paid for a violation of pollution laws was deducted in calculating accounting income (1) Dividend revenue earned on an investment was tax exempt and amounted to $1,400 6. Taxable income is expected for the next few years Swifty Corporation follows IFRS Your answer has been saved and sent for grading See Gradebook for score details Calculate Swifty Corporation's deferred tax asset or liability at December 31, 2020