The following are two independent situations related to future taxable and deductible amounts that resulted from temporary differences at December 31, 2020. In both situations, the future taxable amounts relate to property, plant, and equipment depreciation, and the future deductible amounts relate to settlements of litigation that were previously accrued in the accounts. 1. Blue Spruce Corp. has developed the following schedule of future taxable and deductible amounts: Deductible amounts Taxable amounts 2021 $400 0 2022 $400 0 2023 $400 0 2024 $600 (3,600) 2025 $400 0 Blue Spruce reported a net deferred tax liability of $1,160 at January 1, 2020. 2. Swifty Corp. has the following schedule of future taxable and deductible amounts: Taxable amounts Deductible amounts 2021 $1,000 0 2022 $1,000 0 2023 $1,000 (6,400) 2024 $1,000 0 Swifty Corp. reported a net deferred tax asset of $1,500 at January 1, 2020. Both Blue Spruce Corp. and Swifty Corp. have taxable income of $7,600 in 2020 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2020 are 25% for 2020 to 2023, and 30% for 2024 and subsequent years. All of the underlying temporary differences relate to non-current assets and liabilities. Both Swifty and Blue Spruce report under IFRS. Determine the deferred tax assets or liabilities that will be reported on each company's December 31, 2020 SFP. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Blue Spruce Corp. $ Swifty Corp. $ Deferred tax asset / (liability) For each of these two situations, prepare journal entries to record income taxes for 2020. (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 entero for the amounts.) Blue SpruceCorp. Account Titles and Explanation Debit Credit Date December 31, 2020 (To record current tax expense) December 31, 2020 (To record deferred tax expense) SwiftyCorp Account Titles and Explanation Debit Credit Date December 31, 2020 (To record current tax expense) December 31, 2020 (To record deferred tax expense) Provide the presentation of deferred tax accounts on each company's December 31, 2020 SFP, including their correct classification. Blue Spruce Corp (Partial) Statement of Financial Position $ Swifty Corp. (Partial) Statement of Financial Position $ How would your response to the previous question change if Swifty and Blue Spruce followed the ASPE future/deferred income taxes method? Blue Spruce Corp. (Partial) Statement of Financial Position $ Swifty Corp (Partial) Statement of Financial Position $ The following are two independent situations related to future taxable and deductible amounts that resulted from temporary differences at December 31, 2020. In both situations, the future taxable amounts relate to property, plant, and equipment depreciation, and the future deductible amounts relate to settlements of litigation that were previously accrued in the accounts. 1. Blue Spruce Corp. has developed the following schedule of future taxable and deductible amounts: Deductible amounts Taxable amounts 2021 $400 0 2022 $400 0 2023 $400 0 2024 $600 (3,600) 2025 $400 0 Blue Spruce reported a net deferred tax liability of $1,160 at January 1, 2020. 2. Swifty Corp. has the following schedule of future taxable and deductible amounts: Taxable amounts Deductible amounts 2021 $1,000 0 2022 $1,000 0 2023 $1,000 (6,400) 2024 $1,000 0 Swifty Corp. reported a net deferred tax asset of $1,500 at January 1, 2020. Both Blue Spruce Corp. and Swifty Corp. have taxable income of $7,600 in 2020 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2020 are 25% for 2020 to 2023, and 30% for 2024 and subsequent years. All of the underlying temporary differences relate to non-current assets and liabilities. Both Swifty and Blue Spruce report under IFRS. Determine the deferred tax assets or liabilities that will be reported on each company's December 31, 2020 SFP. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Blue Spruce Corp. $ Swifty Corp. $ Deferred tax asset / (liability) For each of these two situations, prepare journal entries to record income taxes for 2020. (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 entero for the amounts.) Blue SpruceCorp. Account Titles and Explanation Debit Credit Date December 31, 2020 (To record current tax expense) December 31, 2020 (To record deferred tax expense) SwiftyCorp Account Titles and Explanation Debit Credit Date December 31, 2020 (To record current tax expense) December 31, 2020 (To record deferred tax expense) Provide the presentation of deferred tax accounts on each company's December 31, 2020 SFP, including their correct classification. Blue Spruce Corp (Partial) Statement of Financial Position $ Swifty Corp. (Partial) Statement of Financial Position $ How would your response to the previous question change if Swifty and Blue Spruce followed the ASPE future/deferred income taxes method? Blue Spruce Corp. (Partial) Statement of Financial Position $ Swifty Corp (Partial) Statement of Financial Position $