reduced the CCA class; in other words, no gain or loss is reported for tax purposes. 5. Eloisa recognized a $75,000 loss on impairment of a long-term investment whose value was considered impaired. The Income Tax Act permits the loss to be deducted only when the investment is sold and the loss is actually realized. The investment was accounted for at amortized cost. 6. The tax rates are 30% for 2020 and 25% for 2021 and subsequent years. These rates have been enacted and known for the past two years. Instructions a. Calculate the balance in the Deferred Tax Asset or Deferred Tax Liability account at December 31, 2019. b. Calculate the balance in the Deferred Tax Asset or Deferred Tax Liability account at December 31, 2020. c. Prepare the journal entries to record income taxes for 2020. d. Indicate how the Deferred Tax Asset or Deferred Tax Liability account(s) will be reported on the comparative statements of financial position for 2019 and 2020. e. Prepare the income tax expense section of the income statement for 2020, beginning with "Income before income tax." f. Calculate the effective rate of tax. Provide a reconciliation and explanation of why this differs from the statutory rate of 30%. Begin the reconciliation with the statutory rate. Round the tax rates to one decimal place. g. How would your response to parts (a) to (f) change if Eloisa reported under ASPE?