The following information has been provided for Relink Corporation for 20X2-20X5:

Required:
1. What is the tax basis of the capital assets in each year?
2. What is the tax basis of the development costs in each year?
3. What is the accounting basis of the capital assets in each year?
4. What is the accounting basis of the development costs in each year?
5. What is the deferred tax balance in each year?
6. Is the deferred tax balance in each year an asset or a liability?

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Capital asset additions Depreciation expense Capital cost allowance Development costs incurred Development costs amortized Tax rate 20X2 $1,000,000 100,000 200,000 90,000 0 40% 20X3 $0 100,000 160,000 100,000 18,000 37% 20X4 $2,000,000 300,000 528,000 120,000 38,000 37% 20X5 $0 300,000 422,400 50,000 50,000 35%