At December 31, 2013, Chloe Corporation had a temporary difference (related to pensions) and reported a related

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At December 31, 2013, Chloe Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $30,000 on its balance sheet. At December 31, 2014, Chloe has five temporary differences. An analysis reveals the following:

At December 31, 2013, Chloe Corporation had a temporary difference
At December 31, 2013, Chloe Corporation had a temporary difference

The enacted tax rate has been 30% for many years. In November 2014, the rate was changed to 28% for all periods after January 1, 2016. Assume that the company has income tax due of $180,000 on the 2014 tax return and that Chloe follows the ASPE future/deferred income taxes method.
Instructions
(a) Indicate how deferred taxes should be presented on Chloe Corporation's December 31, 2014 balance sheet.
(b) How would your response to part (a) change if Chloe reported under IFRS?
(c) Calculate taxable income for 2014.
(d) Calculate accounting income for 2014.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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