The following information has been provided for Relink Corporation for $20$X$2-20$X$5$:

$20$X$220$X$320$X$420$X$5$

Capital asset additions $ $1,001,007$ $ $0$ $ $2,015,000$ $ $0$

Depreciation expense $115,000115,000315,000315,000$

Capital cost allowance $215,000175,000543,000437,400$

Development costs incurred $105,000115,000135,00065,000$

Development costs amortized $033,00053,00065,000$

Tax rate $40\%37\%37\%35\%$

Required:

$1.$ What is the tax basis of the capital assets in each year?

$2.$ What is the tax basis of the development costs in each year?

$3.$ What is the accounting basis of the capital assets in each year?

$4.$ What is the accounting basis of the development costs in each year?

$5.$ What is the deferred tax balance in each year? $($Negative amounts and deductible amounts should be indicated by a minus sign.$)$

$6.$ Is the deferred tax balance in each year an asset or a liability?

multiple choice

Asset

Liability