Riverbed Tar and Gravel Ltd. operates a road construction business. In its first year of operations, the company won a contract to build a road for the municipality of Cochrane West. It is estimated that the project will be completed over a three-year period starting in June 2020. Riverbed uses the percentage-of-completion method of recognizing revenue on its long-term construction contracts. For tax purposes, and in order to postpone the tax on such revenue for as long as possible, Riverbed uses the completed-contract method allowed by the CRA. For the second year of operations, Riverbed made progress on the construction of the road for the municipality. The account balances at December 31, 2020 and 2021, for the construction project and the accounting and tax balances of accounts related to the equipment used for construction follow:

		2021		2020
Accounts Receivable		$117,000		$320,000
Asset/Liability (net of billings to date of $798,000 and $400,000)		129,000		100,000
Revenue from LongTerm Contracts		427,000		500,000
Construction Expenses		415,000		350,000
Equipment		1,100,000		1,100,000
Accumulated Depreciation-Equipment		455,000		170,000
Undepreciated Capital Cost		618,000		980,000

Riverbeds tax rate is 25% for 2020 and subsequent years. Income before income tax for the year ended December 31, 2020, was $195,000 and for December 31, 2021, was $121,000.

Calculate the deferred tax asset or liability balances at December 31, 2021.

Deferred tax Choose the answer from the menu in accordance to the question statement assetliability

$Enter your answer in accordance to the question statement

eTextbook and Media

List of Accounts

Calculate taxable income and income tax payable for 2021.

Taxable income		$
Income tax payable		$

eTextbook and Media

List of Accounts

Prepare the journal entries to record income taxes for 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
(To record current tax expense)
(To record deferred tax expense)

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List of Accounts

Prepare a comparative income statement for 2020 and 2021, beginning with the line Income before income tax.

Riverbed Tar and Gravel Ltd. Comparative Income Statement (Partial) December 31For the Year Ended December 31For the Month Ended December 31
		2021		2020
		$		$
		$		$

eTextbook and Media

List of Accounts

Provide the statement of financial position presentation for any resulting deferred tax balance sheet accounts at December 31, 2020 and 2021.

Riverbed Tar and Gravel Ltd. Statement of Financial Position (Partial) December 31Quarter Ended December 31Month Ended December 31
		2021		2020
		$		$

eTextbook and Media

List of Accounts

Provide the comparative balance sheet presentation for any resulting deferred tax balance sheet accounts at December 31, 2020 and 2021, assuming Riverbed follows ASPE.

Riverbed Tar and Gravel Ltd. Comparative Balance Sheet (Partial) December 31Quarter Ended December 31Month Ended December 31
		2021		2020
		$		$