The following information was disclosed during the audit of Novak Inc.:

Year Amount Due per Tax Return

2020 $114,000

2021 81,000

1.On January 1, 2020, equipment was purchased for $440,000. For financial reporting purposes, the company uses straight-line depreciation over a five-year life, with no residual value. For tax purposes, the CCA rate is 25%. Assume the equipment is considered "eligible equipment" for purposes of the Accelerated Investment Incentive (under the AII, instead of using the half-year rule, companies are allowed a first-year deduction using 1.5 times the standard CCA rate).

2.In January 2021, $195,000 was collected in advance for the rental of a building for the next three years. The entire $195,000 is reported as taxable income in 2021, but $130,000 of the $195,000 is reported as unearned revenue on the December 31, 2021 SFP. The $130,000 of unearned revenue will be earned equally in 2022 and 2023.

3.The tax rate is 30% in 2020 and all subsequent periods.

4.No temporary differences existed at the end of 2019. Novak expects to report taxable income in each of the next five years. Its fiscal year ends December 31.

Novak Inc. follows IFRS.

required:

• Calculate the amount of capital cost allowance and depreciation expense for 2020 and 2021, and the corresponding carrying amount and undepreciated capital cost of the depreciable assets at December 31, 2020 and 2021.