Seattle Corporation is publicly-listed and follows IFRS. Their income before income tax was $835,900 for the year ended December 31,2022 , with additional information provided below: a) CCA reported on the 2022 tax return exceeded depreciation reported on the income statement by $100,000. This difference, plus the $150,000 accumulated taxable temporary difference at January 1, 2022, is expected to reverse in equal amounts over the four-year period from 2023 to 2026. b) Dividends received from taxable Canadian corporations were $27,000. c) Rent collected in advance and included in taxable income as at December 31,2021 , totalled $60,000 for a three-year period. Of this amount, $40,000 was reported as unearned for book purposes at December 31,2022 . Seattle reports unearned revenue as a current liability if it will be recognized in income within 12 months from the balance sheet date. Seattle paid a $3,470 interest penalty for late income tax instalments. The interest penalty is not deductible for income tax purposes at any time. d) Equipment was disposed of during the year for $90,000. The equipment had a cost of $105,000 and accumulated depreciation to the date of disposal of $37,000. The total proceeds on the sale of these assets reduced the CCA class, in other words, no gain or lossis reported for tax purposes. e) Seattie recognized a $86,960 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. 97 The tax rates are 30% for 2021 and 2022 , and 25% for 2023 and subsequent years. These rates have been enacted and known for the past two years. REQUIRED: 1. Calculate the balance in the Deferred Tax Asset or Deferred Tax Liability account at December 31, 2021. 2. Calculate the balance in the Deferred Tax Asset or Deferred Tax Liability account at December 31, 2022. 3. Prepare the journal entries to record income taxes for 2022. Be sure to show your work and all supporting calculations! 4. Indicate how the Deferred Tax Asset or Deferred Tax Liabilityaccount(s) will be reported on the comparative statements of financial position for 2021 and 2022 5. Prepare the income tax expense section of the income statement for 2022, beginning with "Income before income tax." 6. Calculate the effective rate of tax for 2022. Provide a reconciliation and explanation of why this differs from the 2022 statutory rate of 30%. Begin the reconciliation with the statutory rate. Round the tax rates to one decimal place
