The accounting records of Concord Corp., a real estate developer, indicated income before income tax of $861,000 for its year ended December 31, 2020, and of $534,000 for the year ended December 31, 2021. The following data are also available.

1). Concord Corp. pays an annual life insurance premium of $10,300 covering the top management team. The company is the named beneficiary.

2). The carrying amount of the company’s property, plant, and equipment at January 1, 2020 was $1,269,000, and the UCC at that date was $994,000. Concord recorded depreciation expense of $170,000 and $191,000 in 2020 and 2021, respectively. CCA for tax purposes was $194,000 and $169,500 for 2020 and 2021, respectively. There were no asset additions or disposals over the two-year period.

3). Concord deducted $214,000 as a restructuring charge in determining income for 2019. At December 31, 2019, an accrued liability of $198,000 remained outstanding relative to the restructuring, which was expected to be completed in the next fiscal year. This expense is deductible for tax purposes, but only as the actual costs are incurred and paid for. The actual restructuring of operations took place in 2020 and 2021, with the liability reduced to $68,000 at the end of 2020 and to $0 at the end of 2021.

4). In 2020, property held for development was sold and a profit of $58,000 was recognized in income. Because the sale was made with delayed payment terms, the profit is taxable only as Concord receives payments from the purchaser. A 10% down payment was received in 2020, with the remaining 90% expected in equal amounts over the following three years.

5). Non-taxable dividends of $3,280 in 2020 and of $3,470 in 2021 were received from taxable Canadian corporations.

6). In addition to the income before income tax identified above, Concord reported a before-tax gain on discontinued operations of $17,700 in 2020.

7). A 30% rate of tax has been in effect since 2018.

Concord Corp. follows IFRS.
Determine the balance of any deferred tax asset or liability accounts at December 31, 2019, 2020, and 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Determine 2020 and 2021 taxable income and current tax expense. (Do not leave any answer field blank. Enter 0 for amounts.

	2020		2021
Continuing Operations:
Taxable income		$		$
Current income tax expense		$		$
Discontinued operations:
Taxable income		$		$
Current income tax expense		$		$

Prepare the journal entries to record current and deferred tax expense for 2020 and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2020	Current Tax ExpenseDeferred Tax AssetDeferred Tax ExpenseDeferred Tax LiabilityDeferred Tax BenefitCurrent Tax Expense – Discontinued OperationsNo EntryIncome Tax Payable
	Deferred Tax LiabilityDeferred Tax ExpenseDeferred Tax BenefitDeferred Tax AssetIncome Tax PayableCurrent Tax ExpenseNo EntryCurrent Tax Expense – Discontinued Operations
	Income Tax PayableDeferred Tax LiabilityDeferred Tax BenefitCurrent Tax ExpenseCurrent Tax Expense – Discontinued OperationsDeferred Tax AssetDeferred Tax ExpenseNo Entry
	(To record current tax expense)
December 31, 2020	Deferred Tax ExpenseCurrent Tax ExpenseDeferred Tax LiabilityNo EntryDeferred Tax AssetIncome Tax PayableCurrent Tax Expense – Discontinued OperationsDeferred Tax Benefit
	Deferred Tax ExpenseDeferred Tax AssetDeferred Tax LiabilityNo EntryIncome Tax PayableDeferred Tax BenefitCurrent Tax Expense – Discontinued OperationsCurrent Tax Expense
	(To record deferred tax expense)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2021	Current Tax Expense – Discontinued OperationsDeferred Tax ExpenseDeferred Tax AssetNo EntryCurrent Tax ExpenseDeferred Tax BenefitIncome Tax PayableDeferred Tax Liability
	Deferred Tax BenefitCurrent Tax Expense – Discontinued OperationsNo EntryDeferred Tax AssetDeferred Tax LiabilityDeferred Tax ExpenseIncome Tax PayableCurrent Tax Expense
	(To record current tax expense)
December 31, 2021	Income Tax PayableDeferred Tax ExpenseDeferred Tax LiabilityNo EntryCurrent Tax ExpenseCurrent Tax Expense – Discontinued OperationsDeferred Tax AssetDeferred Tax Benefit
	No EntryDeferred Tax LiabilityDeferred Tax AssetCurrent Tax ExpenseCurrent Tax Expense – Discontinued OperationsDeferred Tax ExpenseDeferred Tax BenefitIncome Tax Payable
	(To record deferred tax expense) Identify how the Deferred Tax Asset or Deferred Tax Liability account(s) will be reported on the December 31, 2020 and 2021 balance sheets. Prepare partial income statements for the years ended December 31, 2020 and 2021, beginning with the line “Income from continuing operations before income tax.” (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Identify how the Deferred Tax Asset or Deferred Tax Liability account(s) will be reported on the December 31, 2020 and 2021 balance sheets if Concord Corp. reported under ASPE.

Answer rating: 100% (QA)

61 Deferred Tax Assets and Liabilities Deferred Tax Assets CCA 194000 Restructuring charge 198000 Deferred Tax Liabilities Property plant and equipmen... View the full answer