(Depreciation, Reversing Difference over Five Years, Determining Taxable Income, Taxes Payable Method)
Zak Corp. purchased depreciable assets costing $600,000 on January 2, 2023. For tax purposes, the company uses CCA in a class that has a 40% rate. Assume these assets are considered "eligible equipment" for purposes of the Accelerated Investment Incentive (under the AII, instead of using the half-year rule, companies are allowed a first-year deduction using 1.5 times the standard CCA rate). For financial reporting purposes, the company uses straight-line depreciation over five years. The enacted tax rate is 30% for all years. This depreciation difference is the only reversing difference the company has. Assume that Zak has income before income tax of $340,000 in each of the years 2023 to 2027.
Determine the amount of deferred taxes that should be reported in the SFP for each year from 2023 to 2027