The following are two independent situations related to future taxable and deductible amounts that resulted from temporary differences at December 31, 2014. In both situations, the future taxable amounts relate to property, plant, and equipment depreciation, and the future deductible amounts relate to settlements of litigation that were previously accrued in the accounts.

1. Alia Corp. has developed the following schedule of future taxable and deductible amounts:

Alia reported a net deferred tax liability of $500 at January 1, 2014.
2. Khoi Corp. has the following schedule of future taxable and deductible amounts:

Khoi Corp. reported a net deferred tax asset of $600 at January 1, 2014.
Both Alia Corp. and Khoi Corp. have taxable income of $4,000 in 2014 and expect to have taxable income in all future years. The tax rates enacted as of the beginning of 2014 are 30% for 2014 to 2017, and 35% for 2018 and subsequent years. All of the underlying temporary differences relate to non-current assets and liabilities. Both Khoi and Alia report under IFRS.
Instructions
(a) Determine the deferred tax assets or liabilities that will be reported on each company's December 31, 2014 statement of financial position.
(b) For each of these two situations, prepare journal entries to record income taxes for 2014. Show all calculations.
(c) Provide the presentation of deferred tax accounts on each company's December 31, 2014 statement of financial position, including their correct classification.
(d) How would your response to part (c) change if Khoi and Alia followed the ASPE future/deferred income taxes method?

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2015 2016 2017 2018 2019 $100 0 $300 $300 $300 Deductible amounts Taxable amounts $ 200 (1,800) 2018 $400 0 2015 2016 2017 Taxable amounts Deductible amounts $400 CD $400 CD $ 400 (3,000)