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At December 3 1 , 2 0 2 2 , Carla Vista Corporation had a temporary difference ( related to pensions ) and reported a
At December Carla Vista Corporation had a temporary difference related to pensions and reported a related deferred tax
asset of $ on its balance sheet. At December Carla Vista has five temporary differences. An analysis reveals the
following:
Temporary Difference
Pension liability: expensed as incurred on the books; deductible when funded for tax purposes
Royalties collected in advance: recognized when earned for accounting purposes and when received for tax purposes
Accrued liabilities: various expenses accrued for accounting purposes and recognized for tax purposes when paid
Deferred gross profit: profits recognized on instalment sales when sold for book purposes, and as collected for tax purposes
Equipment: straightline depreciation for accounting purposes, and CCA for tax purposes
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