Pharoah Corporation purchased equipment very late in 2023. Based on generous capital cost allowance rates provided in the Income Tax Act, Pharoah claimed CCA on its 2023 tax return but did not record any depreciation because the equipment was being tested. This temporary difference will reverse and cause taxable amounts of $32,700 in 2024 , $35,700 in 2025 , and $45,100 in 2026. Pharoah's accounting income for 2023 is $239,000 and $209,000 in each of 2024 and 2025 , and the tax rate is 30% for all years. There are no deferred tax accounts at the beginning of 2023. (a) Calculate the deferred tax balances at December 31, 2024 and 2025. 2024 2025 Deferred tax $ $ Attempts: 1 of 2 used Using multiple attempts will impact your score. 25% score reduction after attempt 1 (b) Calculate taxable income and income tax payable for 2024 and 2025
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