PreZeeDent, Inc., started operations in 2017 and uses IFRS. The financial statements of PreZeeDent reflected the following pre-tax amounts:

PreZeeDent, Inc.

Statement of Income for years ended December 31

	2018	2019
Revenues	$240,000	$345,000
Depreciation expense	21,000	43,500
Other operating expenses	180,000	180,000
Pre-tax accounting income	$ 39,000	$121,500

PreZeeDent, Balance Sheet (partial) as	Inc. at December 31 2018	2019
Property, Plant and Equipment, cost	$375,000	$420,000
Accumulated depreciation	37,500	81,500
Property, Plant and Equipment, net	$337,500	$339,000
Unearned rent revenue Additional information:	$12,000

• The tax rates for PreZeeDent was 25% in 2017, 30% in 2018 and 35% in 2019 which were enacted in February each year. The unearned rent revenue represents cash received from a tenant that will be moving into the building on February 1, 2019. For tax purposes any cash received for future rent services is taxed when the cash is received.
• PreZeeDent claimed capital cost allowance for tax purposes of $16,500 in 2017, $48,000 in 2018 and $50,250 in 2019.
• In 2017, PreZeeDent sold off an excess parcel of land for an amount of $150,000, generating a profit of $60,000. The receipt of cash from this sale was 30% down payment with the balance being 40% in 2018 and 30% in 2019.
• Revenue in 2018 includes dividends received from taxable Canadian corporations of $3,000 and is not taxable.

Required:

1. Prepare all tax related journal entries to record income taxes for 2018.
2. What are the deferred tax amounts to report on the balance sheet for years ended December 31, 2017 and 2018 and how would they be classified?
3. Prepare the income statement beginning with Income Before Taxes for 2018.