The undepreciated cost of capital of depreciable PPE was $1,707,000 as at October 31, 2020. For the first time in 2021, DL has capitalized development costs that are immediately deductible for tax purposes. The capitalized development costs were not amortized yet. Also, only disbursements related to restoration costs are deductible for tax purposes. Similarly, only the contribution to the pension fund is deductible for tax purposes. For simplicity, consider that all pension costs are recognized in net income. The income tax rate was 20% in 2020. It is 19 % in 2021. Other relevant information to determine the 2021 income tax expense is as follows: Loss before income taxes Maximum capital cost allowance (CCA) Depreciation expense for PPE Site restoration costs recognized in net income Cash disbursements for site restoration Pension costs recorded in net income Contribution to the pension fund Non-deductible entertainment expenses $450,000 115,000 95,000 12,000 52,000 80,000 61,000 10,000 Management wishes to claim the maximum amount of CCA in 2021 given the high probability that DL will generate sufficient taxable income in the near future. DL has reported taxable income for a total amount of $300,000 from 2018 to 2020. This amount was taxed at a rate of 20%. Required 1) Assume DL applies IFRS and prepare the journal entries to record the income tax expense for 2021. 2) Prepare a partial statement of comprehensive income for the year ended October 31, 2021 and a partial balance sheet as at October 31, 2021 that will present the accounts and amounts related to income taxes. 3) Prepare the footnote disclosure that will show the income tax rate reconciliation for 2021. Prepare this footnote in dollar amounts (and not in percentages). 4) Now assume that DL applies ASPE and prepare a partial income statement for 2021. The undepreciated cost of capital of depreciable PPE was $1,707,000 as at October 31, 2020. For the first time in 2021, DL has capitalized development costs that are immediately deductible for tax purposes. The capitalized development costs were not amortized yet. Also, only disbursements related to restoration costs are deductible for tax purposes. Similarly, only the contribution to the pension fund is deductible for tax purposes. For simplicity, consider that all pension costs are recognized in net income. The income tax rate was 20% in 2020. It is 19 % in 2021. Other relevant information to determine the 2021 income tax expense is as follows: Loss before income taxes Maximum capital cost allowance (CCA) Depreciation expense for PPE Site restoration costs recognized in net income Cash disbursements for site restoration Pension costs recorded in net income Contribution to the pension fund Non-deductible entertainment expenses $450,000 115,000 95,000 12,000 52,000 80,000 61,000 10,000 Management wishes to claim the maximum amount of CCA in 2021 given the high probability that DL will generate sufficient taxable income in the near future. DL has reported taxable income for a total amount of $300,000 from 2018 to 2020. This amount was taxed at a rate of 20%. Required 1) Assume DL applies IFRS and prepare the journal entries to record the income tax expense for 2021. 2) Prepare a partial statement of comprehensive income for the year ended October 31, 2021 and a partial balance sheet as at October 31, 2021 that will present the accounts and amounts related to income taxes. 3) Prepare the footnote disclosure that will show the income tax rate reconciliation for 2021. Prepare this footnote in dollar amounts (and not in percentages). 4) Now assume that DL applies ASPE and prepare a partial income statement for 2021