Whispering Winds Tar and Gravel Ltd. operates a road construction business. In its first year of operations, the company obtained a contract to construct a road for the municipality of Cochrane West, and it is estimated that the project will be completed over a three-year period starting in June 2020. Whispering Winds uses the percentage-of-completion method of recognizing revenue on its long-term construction contracts. For tax purposes, and in order to postpone the tax on such revenue for as long as possible, Whispering Winds uses the completed-contract method allowed by the CRA. For the second year of operations, Whispering Winds made progress on the construction of the road for the municipality. The account balances at December 31, 2020 and 2021, for the construction project and the accounting and tax balances of accounts related to the equipment used for construction follow:

		2021		2020
Accounts Receivable		$115,000		$320,000
Asset/Liability (net of billings to date of $802,000 and $400,000)		112,000		100,000
Revenue from LongTerm Contracts		414,000		500,000
Construction Expenses		402,000		350,000
Equipment		1,100,000		1,100,000
Accumulated Depreciation-Equipment		453,000		176,000
Undepreciated Capital Cost		624,000		982,000

Whispering Windss tax rate was 25% in 2020 and 2021. The enacted tax rate for 2022 and subsequent years was reduced to 20% on September 15, 2021. Income before income tax for the year ended December 31, 2020, was $195,000 and for December 31, 2021, was $131,000. Whispering Winds reports under IFRS.

Prepare the journal entry to record the effect of the change in the enacted tax rate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
September 15, 2021	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

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Calculate any deferred tax balances at December 31, 2021.

Deferred tax select an option assetliability

$enter a dollar amount

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Calculate taxable income and income tax payable for 2021.

Taxable income		$enter a dollar amount
Income tax payable		$enter a dollar amount

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Prepare the journal entries to record income taxes for 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
enter an account title to record current tax expense	enter a debit amount	enter a credit amount
enter an account title to record current tax expense	enter a debit amount	enter a credit amount
(To record current tax expense)
enter an account title to record deferred tax expense	enter a debit amount	enter a credit amount
enter an account title to record deferred tax expense	enter a debit amount	enter a credit amount
(To record deferred tax expense)

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Prepare a comparative income statement for 2020 and 2021, beginning with the line Income before income tax.

Whispering Winds Tar and Gravel Ltd. Comparative Income Statement (Partial) choose the accounting period For the Year Ended December 31December 31For the Month Ended December 31
		2021		2020
select an income statement item Income Tax Expense - DeferredCurrent Income Tax BenefitIncome Before Income TaxDeferred Tax LiabilityNet Income / (Loss)Deferred Tax AssetIncome Tax Expense - Current		$enter a dollar amount		$enter a dollar amount
select an income statement item Deferred Tax LiabilityDeferred Tax AssetIncome Tax Expense - DeferredIncome Before Income TaxNet Income / (Loss)Income Tax Expense - CurrentCurrent Income Tax Benefit		enter a dollar amount		enter a dollar amount
select an income statement item Deferred Tax AssetCurrent Income Tax BenefitDeferred Tax LiabilityIncome Tax Expense - CurrentIncome Before Income TaxIncome Tax Expense - DeferredNet Income / (Loss)		enter a dollar amount		enter a dollar amount
		enter a subtotal of the two previous amounts		enter a subtotal of the two previous amounts
select a closing name for this statement Current Income Tax BenefitIncome Before Income TaxIncome Tax Expense - CurrentNet Income / (Loss)Income Tax Expense - DeferredDeferred Tax LiabilityDeferred Tax Asset		$enter a total net income or loss amount		$enter a total net income or loss amount

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Provide the comparative SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020, and 2021.

Whispering Winds Tar and Gravel Ltd. Comparative Statement of Financial Position (Partial) choose the accounting period For the Month Ended December 31For the Year Ended December 31December 31
		2021		2020
select an opening section name Non-Current AssetsNon-Current LiabilitiesCurrent AssetsCurrent LiabilitiesProperty, Plant and EquipmentShareholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Liabilities and Shareholders' EquityTotal Property, Plant and EquipmentTotal Shareholders' EquityTotal Liabilities
enter an item		$enter a dollar amount		$enter a dollar amount

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List of Accounts