R corpaoration purchased equipment very late in 2026. Based on gernous capital cost allowance rate provided in the income tax act .R>Corporation claimed CCA on its 2026 tax return, but did not record anu deprecation as the equipment had not yet been put into use. This temporary difference will reverse and cause taxable amount of $30,00 In 2017, $36,000 in 2028, and $48,000 in 2029.

R corporation accounting income for 2026 is $360,000 and the tax rate is 20% for all years. There are no future accounts at the beginning of 2026.

Required

1. A) calculate the future income tax balance at December 31, 2026. Is this future tax asset to a future tax liability
2. Calculate taxable income and income taxes payable for 2026
3. Prepare appropriate journal entries to record income taxes for 2026

2. Assume that Corporation reports accounting income of $290,000 for 2027, and no other temporarily differences other than the one identified part 1 above:

1. Calculate the future income tax balance at December 31, 2027. Is this a future tax asset or a future tax liability?
2. Calculate taxable income and income taxes payable for 2027
3. Prepare approaprite journal entries to record income taxes for 2027.