Question $3(15$ Marks$)$

corp. reported the following information:

a$.$ Income before income laxes was $$620,000.$

b$.$ The company acquired capital assels conting $$1,800,000$; depreciation was $$120,000,$ $$125,000$ for the one$-$year warranty on the

c$.$ The company reconded an expense of $$125,000$ to actual warranty claims amounted to company's products; cash disbursements related to actions $$77,000.$

d$.$ The company made a political contribution of $$20,000$ that was expensed for accounting purposes, but not tax$-$deductible.

e$.$ The income tax rate was $28\%$ and the year $2$ tax rate was enacted, at $30\%.$

In the second year, the company reported the following:

a$.$ Earnings before income tax were $$1,600,000.$

b$.$ Depreciation was $$120,000,$ and CCA was $$260,000.$

c$.$ The estimated warranty costs were $$200,000,$ while the cash expenditure was $$205,000.$

d$.$ Golf club membership for lop executhes cost $$25,000$; this was expensed for accounting purposes as a marketing expense, but not tax$-$deductible.

Required

Reconolie accounting income before tax to taxable income for year $1.(3$ marks$)$

Prepare the required income tax related joumal entries for year $1.(5$ marks$)$

Reconcile accounting income before tax to taxable income for year $2.(3$ marks$)$

What are the amoun's and the statement of financial position classifications of the deferred income tax asselliability accounts for year $2?(4$ marks$)$