Vigor Corporation reports a net income before tax for 2020 of $512,800, has a tax rate of 21% and provides the following selected information (covers the three tax difference items) from its ledger as at December 31, 2019 and 2020:

2019 2020

Equipment, at cost 900,000 DR 900,000 DR

Accumulated depreciation, equipment 450,000 CR 525,000 CR

Deferred Tax Asset 10,080 DR ?

Warranty Liability 48,000 CR 56,000 CR

Deferred Tax Liability 47,250 CR ?

Depreciation expense, equipment 75,000 DR 75,000 DR

Warranty expense 27,000 DR 30,000 DR

Municipal bond interest (tax exempt) 17,800 CR 18,800 CR

The tax basis of the equipment (book value for tax purposes or the amount of the cost of the asset not yet deducted for tax purposes) is $225,000 at December 31, 2019 and $112,500 as at December 31, 2020. The tax deduction for warranties is limited to actual warranty payments.

Required:

1. What is the tax deduction for warranties on Vigors 2020 tax return?
2. What is taxable income for 2020?
3. What is income tax expense/benefit, current portion for 2020?
4. What is the amount of the deferred tax asset at December 31, 2020?
5. What is the amount of the deferred tax liability at December 31, 2020?
6. What was income tax expense/benefit, deferred portion for 2020?
7. What is Vigors effective income tax rate (ETR) for 2020?