Sorpon Corporation purchased equipment very late in 2017. Based on generous capital cost allowance rates provided

in the Income Tax Act, Sorpon Corporation claimed CCA on its 2017 tax return but did not record any depreciation

because the equipment had not yet been put into use. This temporary difference will reverse and cause taxable amounts

of $25,000 in 2018, $30,000 in 2019, and $40,000 in 2020. Sorpon's accounting income for 2017 is $200,000 and the tax

rate is 30% for all years. There are no deferred tax accounts at the beginning of 2017.

Instructions:

a) Calculate the deferred tax balance at December 31, 2017.

b) Calculate taxable income and income tax payable for 2017.

c) Prepare the journal entries to record income taxes for 2017.

d) Prepare the income tax expense section of the income statement for 2017, beginning with the line "Income before

income tax."