The following information is available for the first three years of operations for

Ming Inc.:

$1.$ Year Taxable Income

$2023$ $$250,000$

$2024180,000$

$2025200,000$

$2.$ On January $2,2023,$ equipment was purchased for $$500,000.$ The equipment

had an estimated service life of $5$ years and no residual value. Straight$-$line

depreciation is used for book purposes and CCA at $30\%$ is used for tax

purposes $($subject to the accelerated investment incentive$).$

$3.$ On January $2,2024,$ $$210,000$ was collected in advance for the rental of a

building for three years. The entire $$210,000$ was included in taxable income

in $2024,$ but two$-$thirds of the $$210,000$ was reported as unearned revenue

at December $31,2024$ for book purposes.

$4.$ The enacted tax rate is $45\%$ for all years.

Instructions

a$)$ Prepare a schedule comparing depreciation for book purposes with CCA for

tax purposes.

b$)$ Determine the deferred tax asset or liability at the end of $2023.$

c$)$ Prepare a schedule of future taxable and deductible amounts at the end of

$2024.$

d$)$ Prepare a schedule of the deferred tax asset and$/$or liability at the end of

$2024.$

e$)$ Calculate the net deferred tax expense or benefit for $2024.$

f$)$ Prepare the adjusting entries to record income tax expense, deferred taxes,

and income tax payable for $2024.$

g$)$ CRITICAL THINKING In the context of predicting future cash flows, why is

the deferred$/$future income tax method more appropriate than the taxes

payable method for this company?