Question 1 [15 marks] Kuib Inc. started its operation on January 1, 2018. The chief accountant provided the following information for the year ended December 31, 2018. (i) The newly purchased PPEs, costing $2,000,000, went into operation on January 1, 2018. The net book value was $1,800,000 at the end of the year. The capital allowance was $800,000 for the year. (ii) Kuib Inc. held an equity investment measured at fair value through other comprehensive income. The cost of the investment was $580,000, and the market value increased to be $860,000 at the end of the year. The gain from fair value increase is not taxed until the disposal of the investment in the future. (iii) Kuib Inc. accrued the interest of $90,000 from the investment in corporate bonds for the year. The interest income is taxable when the company receives the interest in cash in the subsequent year. (vi) Kuib Inc. had a payable of $32,000 at the end of the year. The related expense is not deductible for tax purpose until cash payment made in 2019. (v) Kuib Inc. sold two models of mobile phones (model X and model Y) with two-year warranty provided. During the year, the quantity of model X and model Y sold was 6,000 and 5,000, respectively. The expected percentage of the phones requiring repair during the warranty period was 10% for model X and 20% for model Y. The repair costs were estimated to be $100 for model X and $120 for model Y. Kuib Inc. spent $55,000 on repair as claimed by the buyers during the year. Product warranty costs are deductible for tax purpose when the company meets actual claims. Required: Assume the applied tax rate is 30%. Determine the effects of deferred tax on the statement of financial position and the statement of comprehensive income.