Vigor Corporation reports a net income before tax for 2020 of
$512,800, has a tax rate of 21% and provides the following selected
information (covers the three tax difference
items) from its ledger as at December 31, 2019 and 2020:
2019
2020
Equipment, at
cost
900,000 DR 900,000 DR
Accumulated depreciation, equipment 450,000 CR
525,000 CR
Deferred Tax
Asset
10,080
DR
?
Warranty
Liability
48,000 CR 56,000 CR
Deferred Tax
Liability
47,250
CR ...