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P18-8 Sarah Corp. reported the following differences between statement of fina tax bases at December 31,2016: ncial position carrying amounts and Carrying Amount Tax Base $67,500 Depreciable assets Warranty liability (current liability) Pension liability (long-term liability) $100,000 20,500 38,800 The differences between the carrying amounts and tax bases were expected to reverse as follows: The differences between the carying amounts and tas bases were expected to reverse as follows Depreciable assets Warranty liability Accrued pension liability 2017 $17,500 20,500 2018 $12,500 After 2018 $ 2,500 14,800 12,000 12,000 Tax rates enacted at December 31, 2016 were 31% for 2016,30% for 2017, 29% for 2018 and 28% for 2019 and later years. During 2017, Sarah Corp. made four quarterly tax instalment payments of $9,500 each and reported income before income tax on its income statement of $11 porations of $5,800 (non-taxable income) and deductible expenses). There were no changes to the enacted tax rates during th 9,650. Included in this amount were dividends from taxable Canadian cor- $25,000 of expenses related to the executive team's golf dues (non-tax- e year exceeded the capital cost allowance claimed for tax purposes by $17,500, As expected, book depreciation in 2017 and there were no additions or disposals of property, plant, and equi in the Warranty Liability account in the ledger indicated the following and there were no addiy account in th o additions or disposals of property, plant, and equipment during the year. A review of the 2017 activity Balance, Dec. 31, 2016 Payments on 2016 product warranties Payments on 2017 product warranties 2017 warranty accrual Balance, Dec. 31, 2017 $20,500 (21,200) (6,300) 30,480 $23,480

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