1. Soul Sister Ltd. (SSL) has recorded income taxes payable of $250,000 for 2021. The tax rate for 2021 is 25% increasing to 30% in subsequent years. You have also obtained the following information:

• Capital cost allowance (CCA) reported on the 2021 tax return exceeded depreciation reported on the income statement by $150,000. This difference is expected to reverse in three equal amounts of $50,000 per year starting in 2022.
• $80,000 of sales revenue was collected on January 1, 2021. As at December 31, 2021 $50,000 was unearned.
• Dividends received from taxable Canadian corporations were $25,000.
• $40,000 was recorded in 2021 for a pending legal lawsuit related to wrongful dismissal.

Required (11 marks): Calculate taxable income and accounting income for SSL for 2021.