Answer the following question:

Turkey Corp. changed its policy for accounting for certain staff training costs in 20X5. Previously, the costs were capitalized and amortized straight-line over three years, starting with the year of the expenditure. The new policy is to expense training costs as incurred. A total of $45,000 was spent in 20X3, $0 in 20X4, and $60000 in 20X5. The 20X5 expense has not yet been recorded, but the $60,000 was capitalized to the intangible asset when the money was spent. The tax rate is 30%.

	Amortization	Expense	Cumulative Effect	Cumulative Effect, after tax
20X3	$15000	$45000	$(30000)	$(21000)
20X4	$15000	-	(15000)	(10500)
20X5	$35000	$60000	N/A	N/A

Show and explain how all these numbers were calculated clearly as well as the entry below. In addition, explain why some are blank and N/A.

Dr R/E $10500

Dr Deferred tax $4500

Cr Staff training intangible asset $15000