Using the information from BE18-4, and assuming that the $40,000 difference is the only difference between Anugraham’s accounting income and taxable income, prepare the journal entry(ies) to record the current tax expense, deferred tax expense, income tax payable, and the deferred tax liability.

Data From BE18-4:

Anugraham Corp. follows IFRS and began operations in 2014 and reported accounting income of $275,000 for the year. Anugraham’s CCA exceeded its book depreciation by $40,000. Anugraham’s tax rate for 2014 and years thereafter is 35%. In its December 31, 2014 statement of financial position, what amount of deferred tax liability should be reported?