Additional Information:

Wildhorse is privately owned and uses ASPE. The dividend revenue represents dividends received from taxable Canadian

corporations.

Wildhorse's income tax rate is $30\%.$

On January $1,2023,$ Wildhorse had a future tax liability of $$3,255$ related to its property, plant and equipment $($PPE$).$

During the year, warranty expense of $$4,000$ was accrued. One half of this amount was paid during $2023.$ This is the first year

Wildhorse offers warranties on services rendered.

Property, plant, and equipment was purchased for $$108,500$ on January $1,2022.$ These assets are being depreciated on a

straight$-$line basis over five years with no residual value and have a $20\%$ CCA rate. This PPE is considered "eligible equipment"

for purposes of the Accelerated Investment Incentive $($AII$)($under the All, instead of using the half$-$year rule, companies are

allowed a first$-$year deduction using $1\mathrm{.}5$ times the standard CCA rate$).$

On July $1,$ Wildhorse was sued by a competitor. Although the lawsuit has not been finalized, management believes that it is

likely that a settlement will be reached in the next year for $$7,500.$ This amount has been accrued in the financial statements.

On November $30,$$$4,000$ cash was paid in advance for four months of advertising, starting Dec. $1.$

$($a$)$

Your Answer Correct Answer $($Used$)$

Calculate the amount of any permanent differences for $2023.$

Permanent differences $

$($b$)$

Your Answer Correct Answer $($Used$)$

Calculate the amount of any temporary differences for $2023.$

Temporary differences

$

$($c$)$

Calculate taxable income and the amount of current income taxes expense for $2023.$

Taxable income $

Taxes payable $

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