You have been asked to account for income taxes for Capital Consultants. At December 31, 2013, the net book value of capital assets was $558,000 and the undepreciated capital cost was $341,000. In addition, there was a $384,000 accounts receivable on the company's balance sheet. This receivable had been set up in 2013 upon the recognition of revenue. The revenue will not be taxable until the receivable is collected. Capital Consultants has always been a profitable company and has had accounting and taxable income in each of the last three years. Taxable income totalled $74,000 over the last three years, including 2013. The tax rate has been stable at 50%. In 2014, Capital Consultants recorded its first-ever accounting loss, reporting a loss of $486,000. This included revenue on the collection of a life insurance policy on the company president, who died in a mountain climbing accident during the year. The $206,000 revenue is not taxable now or in any future period. Depreciation expense was $39,000. No capital allowance was claimed. No portion of the 2013 account receivable was collected. The tax rate, enacted in 2014, was 45%. Capital Consultants management felt that they were assured of realizing the tax loss carryforward in future years. In 2015, Capital Consultants returned to financial health and reported accounting income of $269,000. Non-deductible advertising expenses were $22,000. Depreciation was $56,000, and capital allowance was $67,000. Of the receivable recorded in 2013, $121,000 was collected. The tax rate, enacted in 2015, was 55%. Please make sure your final answer(s) are accurate to the nearest whole number.

a) Calculate taxable income and taxes payable for 2014 and 2015. Taxes payable for 2015 should be calculated before the application of any available loss carryforward. Input 0 when the answer is 0 or not applicable.

	2014	2015
Taxable Income
Tax Payable

b) Complete the following calculations of the loss carryback, refund receivable and the loss carryforward at the end of 2014.

	Amount
Loss Carryback
Loss Carryforward
Refund Receivable

c) Complete the following calculations of changes / adjustments to deferred income taxes to be journalized under the deferred tax method including amounts related to any loss carryforward.

	2014	2015
Capital Asset adjustment required
accounts receivable adjustment required
Adjustment to loss carryforward ending balance

d) Prepare the December 31 journal entries to record income taxes for 2014 and 2015. Use the Income tax expense account for all income statement adjustments to both current and deferred taxes. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan).