R corpaoration purchased equipment very late in 2026. Based on gernous capital cost allowance rate provided in the income tax act .R>Corporation claimed CCA on its 2026 tax return, but did not record anu deprecation as the equipment had not yet been put into use. This temporary difference will reverse and cause taxable amount of $30,00 In 2017, $36,000 in 2028, and $48,000 in 2029.   R corporation accounting income for 2026 is $360,000 and the tax rate is 20% for all years. There are no future accounts at the beginning of 2026.   Required   A) calculate the future income tax balance at December 31, 2026. Is this future tax asset to a future tax liability Calculate taxable income and income taxes payable for 2026 Prepare appropriate journal entries to record income taxes for 2026

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.