Refer to E18.7 for Sayaka Tar and Gravel Ltd., and assume the same facts as in E18.8 for the fiscal year ended December 31, 2021, except that the enacted tax rate for 2022 and subsequent years was reduced to 20% on September 15, 2021. 

Instructions 

a. Prepare the journal entry to record the effect of the change in the enacted tax rate. 

b. Calculate any deferred tax balances at December 31, 2021. 

c. Calculate taxable income and income tax payable for 2021. 

d. Prepare the journal entries to record income taxes for 2021. 

e. Prepare a comparative income statement for 2020 and 2021, beginning with the line “Income before income tax” and provide details about the components of income tax expense. 

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

g. Repeat the balance sheet presentation in part (f) assuming Sayaka follows ASPE.