Sheffield Tar and Gravel Ltd. operates a road construction business. In its first year of operations, the company obtained a contract to construct a road for the municipality of Cochrane West, and it is estimated that the project will be completed over a three-year period starting in June 2020. Sheffield 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, Sheffield uses the completed-contract method allowed by the CRA. For the second year of operations, Sheffield 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		$107,000		$320,000
Asset/Liability (net of billings to date of $798,000 and $400,000)		115,000		100,000
Revenue from LongTerm Contracts		413,000		500,000
Construction Expenses		409,000		350,000
Equipment		1,100,000		1,100,000
Accumulated Depreciation-Equipment		453,000		178,000
Undepreciated Capital Cost		622,000		981,000

Sheffields tax rate was 25% in 2020 and 2021. The enacted tax rate for 2022 and subsequent years was reduced to 20% on September 15, 2021. Income before income tax for the year ended December 31, 2020, was $195,000 and for December 31, 2021, was $127,000. Sheffield reports under IFRS.

(a) Prepare the journal entry to record the effect of the change in the enacted tax rate.

(b) Calculate any deferred tax balances at December 31, 2021. Calculate taxable income and income tax payable for 2021. (c) Prepare the journal entries to record income taxes for 2021. and Prepare a comparative income statement for 2020 and 2021, beginning with the line Income before income tax, Provide the comparative SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020, and 2021.

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