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P18-1 Anthony Ltd. began business on January 1, 2016. At December 31, 2016, it had a $4,500
balance in the Deferred Tax Liability account that pertains to property, plant, and equipment
acquired during 2016 at a cost of $900,000. The property, plant, and equipment is being
depreciated on a straight-line basis over six years for financial reporting pur- poses, and is a
Class 8-20% asset for tax purposes. Anthony's income before income tax for 2017 was
$60,000. Anthony Ltd. follows IFRS and the half-year convention for depreciation.
The following items caused the only differences between accounting income before income tax
and taxable income in 2017.
. In 2017, the company paid $56,250 for rent; of this amount, $18,750 was expensed in
2017. The other $37,500 will be expensed equally over the 2018 and 2019 accounting

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