Superior Corporation reports accounting income of $130,000 for 2020. The following items cause taxable income to be different than income reported on the financial statements:

1. Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $36,000. At December 31, 2020, the UCC Balance is $170,000 (on tax return) and the accounting carrying value of Property Plant & Equipment is $206,000.

2. Rent revenue reported on the tax return is $15,000 higher than rent revenue reported on the income statement. Unearned rent revenue has been recorded for accounting purposes.

3. Non-deductible fines appear as an expense of $8,000 on the income statement.

4. Superiors tax rate is 25% for all years and the company expects to report taxable income in all future years. There are no deferred/future taxes at the beginning of 2020. Superior Reports under IFRS using the deferred/future income tax method.

Required (show all of your calculations in your response document):

a) Calculate taxable income and income taxes payable for 2020 (rounded to the nearest dollar) Remember to clearly label your answers.

b) Prepare the journal entry to record the current tax expense or benefit for 2020.

c) Calculate the deferred/future income tax item balance for December 31, 2020 (rounded to the nearest dollar). Please clearly label your answer as an asset or liability.

d) Prepare the journal entry to record the deferred/future tax expense or benefit for 2020. Remember that there are no deferred/future taxes at the beginning of 2020.

e) How much total income tax expense will be reported on the Income Statement at the end of 2020?