The accounting records of Monty Corp., a real estate developer, indicated income before income tax of $850,000 for its year ended December 31, 2020, and of $546,000 for the year ended December 31, 2021. The following data are also available. 1. Monty Corp. pays an annual life insurance premium of $10,500 covering the top management team. The company is the named beneficiary. 2. The carrying amount of the company's property, plant, and equipment at January 1, 2020 was $1,250,000, and the UCC at that date was $990,000. Monty recorded depreciation expense of $173,000 and $181,000 in 2020 and 2021, respectively. CCA for tax purposes was $189,000 and $168,500 for 2020 and 2021, respectively. There were no asset additions or disposals over the two-year period. 3. a Monty deducted $209,000 as a restructuring charge in determining income for 2019. At December 31, 2019, an accrued liability of $199,500 remained outstanding relative to the restructuring, which was expected to be completed in the next fiscal year. This expense is deductible for tax purposes, but only as the actual costs are incurred and paid for. The actual restructuring of operations took place in 2020 and 2021, with the liability reduced to $65,000 at the end of 2020 and to $0 at the end of 2021. 4. In 2020, property held for development was sold and a profit of $54,000 was recognized in income. Because the sale was made with delayed payment terms, the profit is taxable only as Monty receives payments from the purchaser. A 10% down payment was received in 2020, with the remaining 90% expected in equal amounts over the following three years. 5. Non-taxable dividends of $3,250 in 2020 and of $3,580 in 2021 were received from taxable Canadian corporations. 6. In addition to the income before income tax identified above, Monty reported a before-tax gain on discontinued operations of $17,700 in 2020. 7. A 30% rate of tax has been in effect since 2018. Monty Corp. follows IFRS. Part 1 Your answer is correct. Determine the balance of any deferred tax asset or liability accounts at December 31, 2019, 2020, and 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2019 2020 PP&E 78,000 Liability 82,800 i Liat Restructuring Charges 59,850 Asset 19,500 Ass Profit on Property Sale 0 No balance 14,580 i Liat e Textbook and Media Part 1 Your answer is correct. Determine the balance of any deferred tax asset or liability accounts at December 31, 2019, 2020, and 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2020 2021 ity 82,800 Liability 79,050 Liability 19,500 Asset 0 No balance alance 14,580 Liability 9,720 i Liability Part 2 Your answer is correct. Determine 2020 and 2021 taxable income and current tax expense. (Do not leave any answer field blank. Enter O for amounts.) 2020 2021 Continuing Operations: Taxable income $ 658,150 $ 516,620 Current income tax expense $ 197,445 $ 154,986 Discontinued operations: Taxable income $ 17,700 $ 0 Current income tax expense $ 5,310 $ 0 Part 3 Your answer is partially correct. Prepare the journal entries to record current and deferred tax expense for 2020 and 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 Ofor the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020 Current Tax Expense 197,445 Current Tax Expense - Discontinued Operations 5,310 Income Tax Payable 202.755 (To record current tax expense) December 31, 2020 Deferred Tax Expense Deferred Tax Liability (To record deferred tax expense) III III Date Account Titles and Explanation Debit Credit December 31, 2021 Current Tax Expense Income Tax Payable (To record current tax expense) December 31, 2021 Deferred Tax Expense 100 154,986 Deferred Tax Liability 154,986 (To record deferred tax expense)