$(14$ marks$)1.$Sun Bear Corporation is preparing its corporate tax return for its third year of operations.

Information provided for the purpose of completing this return follows:

a$)$ Year end for Sun Bear Corporation June $30,2024$

b$)$ Income before income taxes for the current year $ $1,428,397$

c$)$At the beginning of the current year, the book value of property,

plant and equipment was the following: $$1,542,717$

At the beginning of the current year, the undepreciated capital

cost of property, plant and equipment was the following:$ $1,311,309$

In the current year, depreciation expense in the following amount

was deducted in the calculation of income before income taxes: $ $385,679$

Sun Bear Corporation will deduct capital cost allowance of the

following amount in the calculation of taxable income for the

current year: $ $539,951$

d$)$ At the end of the current year, Sun Bear Corporation accrued an

estimated lawsuit expense of the following amount: $$146,420$

The estimated lawsuit expense will be deductible next year when it

is expected to be paid.

e$)$In the current year, Sun Bear Corporation started selling

commercial grade appliances on an instalment basis. Customers

make payments for the appliances in equal monthly instalments

over a fixed period, with a small down payment required at the

time of sale. Information pertaining to instalment sales follows:

Amount of gross profit recognized in accounting income for the

current year: $$83,568$

Portion of gross profit collected in the current year: $20\%$

f$)$Sun Bear Corporation pays an annual life insurance premium

covering the top management team. The company is the named

beneficiary. The following premium was deducted in the

calculation of accounting income for the current year: $$13,428$

Note that these premiums are not deductible in the calculation of

taxable income.

g$)$Sun Bear Corporation has the following corporate tax rate for the

current year: $29\%$

h$)$ Sun Bear Corporation follows IFRS.

i$)$Sun Bear Corporation had the following opening balance in its

deferred tax liability account at the beginning of the current year: $$67,108$

Required;

$1)$Calculate taxable income and income tax payable for the current year. $(6$ marks$)$

$2)$Using a chart with the following headings, determine the amount that will appear on the statement of financial position for deferred taxes at the end of the current year $(4$ marks$)$

Statement of Financial Position Account, Tax Base, Carrying Amount, Deductible $($Taxable$)$ Temporary Differences, Tax Rate, Deferred Tax Asset $($Liability$)$

$3.$ Prepare the journal entries to record income taxes for the current year. $(2$ marks$)$

$4.$ Prepare the income tax expense section of the income statement for the current year, beginning with the line "Income before income taxes". $(2$ marks$)$