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

1. Year Accounting Income

2019 $250,000

2020 180,000

2021 200,000

2. On January 2, 2019, 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. In the first year (2019), the CCA that is deducted for tax purposes is $80,000. After year one, CCA is calculated using the 30% rate.

3. On January 2, 2020, $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 2020, but two-thirds of the $210,000 was reported as unearned revenue at December 31, 2020 for book purposes.

4. The enacted tax rate is 40% for all years.

Required:

a) Prepare a schedule comparing depreciation for book purposes with CCA for tax purposes (for 2019 2021).

b) Determine the deferred tax asset or liability at the end of 2019.

c) What is the deferred tax asset and/or liability at the end of 2020?

d) Prepare the adjusting journal entries to record income tax expense, deferred taxes, and income tax payable for 2020.