accounting question

Question 2 The following information applies to Whispering Winds Corporation, which reports under IFRS. 2. 3. Prior to 2019, taxable income and accounting income were identical. Accounting income was $1.7 million in 2019 and $1.45 million in 2020. On January 1, 2019, equipment costing $2.00 million was purchased. It is being depreciated on a straight-line basis over eight years for financial reporting purposes, and is a Class 8-20% asset for tax purposes. Tax-exempt interest income of $60,000 was received in 2020. The tax rate is 30% for all periods. Taxable income is expected in all future years. Whispering Winds Corporation had 100,000 common shares outstanding throughout 2020. 5. 6. 7. Calculate the amount of capital cost allowance and depreciation expense for 2019 and 2020, and the corresponding carrying amount and undepreciated capital cost of the depreciable assets at the end of 2019 and 2020. Capital Cost Allowance Undepreciated Capital Cost Depreciation Expense Net Book Value 2019 $ $ 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Determine the amount of current and deferred tax expense for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Current income tax expense 5 S Deferred tax expense 5 Prepare the journal entries to record 2020 income taxes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record current tax expense) December 31, 2020 (To record deferred tax expense) Prepare the bottom portion of Whispering Winds's 2020 income statement, beginning with the line "Income before income tax." (Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45). Round Earning Per Share to 2 decimal places, e.g. 15.25.) Whispering Winds Corporation (Partial) Income Statement Indicate how deferred taxes should be presented on the December 31, 2020 SFP. Whispering Winds Corporation (Partial) Statement of Financial Position Question 2 The following information applies to Whispering Winds Corporation, which reports under IFRS. 2. 3. Prior to 2019, taxable income and accounting income were identical. Accounting income was $1.7 million in 2019 and $1.45 million in 2020. On January 1, 2019, equipment costing $2.00 million was purchased. It is being depreciated on a straight-line basis over eight years for financial reporting purposes, and is a Class 8-20% asset for tax purposes. Tax-exempt interest income of $60,000 was received in 2020. The tax rate is 30% for all periods. Taxable income is expected in all future years. Whispering Winds Corporation had 100,000 common shares outstanding throughout 2020. 5. 6. 7. Calculate the amount of capital cost allowance and depreciation expense for 2019 and 2020, and the corresponding carrying amount and undepreciated capital cost of the depreciable assets at the end of 2019 and 2020. Capital Cost Allowance Undepreciated Capital Cost Depreciation Expense Net Book Value 2019 $ $ 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Determine the amount of current and deferred tax expense for 2020. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Current income tax expense 5 S Deferred tax expense 5 Prepare the journal entries to record 2020 income taxes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record current tax expense) December 31, 2020 (To record deferred tax expense) Prepare the bottom portion of Whispering Winds's 2020 income statement, beginning with the line "Income before income tax." (Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45). Round Earning Per Share to 2 decimal places, e.g. 15.25.) Whispering Winds Corporation (Partial) Income Statement Indicate how deferred taxes should be presented on the December 31, 2020 SFP. Whispering Winds Corporation (Partial) Statement of Financial Position