The pre-tax income statements for Moonstone Ltd. for two years (summarized) were as follows:

Year

20X8

20X8

Revenues

272000

336000

Expenses

184,000

240000

Pre-tax income

88000

96000

For tax purposes, the following income tax differences existed:

Revenues on the 20X9 statement of profit and loss include $40,000 rent, which is taxable in 20X8 but was unearned at the end of 20X8 for accounting purposes.

Expenses on the 20X9 statement of profit and loss include political contributions of $14,000, which are not deductible for income tax purposes.

Expenses on the 20X8 statement of profit and loss include $21,200 of estimated warranty costs, which are not deductible for income tax purposes until 20X9.

Required: 1. What was the accounting carrying value and tax basis for unearned revenue and the warranty liability at the end of 20X8 and 20X9? (Leave no cells blank - be certain to enter "0" wherever required.)

year	2008	2008	2009	2009
	Unearned revenue	Warranty	Unearned Revenue	Warranty
Accounting Carrying Value
Tax Basis

2. Compute (a) income tax payable, (b) deferred income tax, and (c) income tax expense for each period. Assume a tax rate of 30%. (Amounts to be deducted should be indicated by a minus sign.)

	2008	2009
a. Income tax payable
b. deferred Income tax
c. Total income tax expense

3. Give the entry to record income taxes for each period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the entry for current and deferred tax expense for 2008 and 2009

4. What amount of deferred income tax will be reported on the statement of financial position at each year-end?