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At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $30,900 on its
At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $30,900 on its balance sheet. At December 31, 2023, Blossom has five temporary differences. An analysis reveals the following: 1. 2. 3. 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 4. 5. Deferred gross profit: profits recognized on instalment sales when sold for book purposes, and as collected for tax purposes Equipment: straight-line depreciation for accounting purposes, and CCA for tax purposes The enacted tax rate has been 30% for many years. In November 2023, the rate was changed to 28% for all periods after January 1. 2025. Assume that the company has income tax due of $180,000 on the 2023 tax return and that Blossom follows IFRS. (a) Indicate how deferred taxes should be presented on Blossom's December 31, 2023 SFP. BLOSSOM CORPORATION (Partial) Balance Sheet At Dec 21 2022 Corporation had a temporary afference viated to cension and reported a related deferred tax st of $30.900 in its balance sheet At December 21 2023, som ove temporary ducas Alany Future (Taxable) Deductible Amounts Temporary Differenc 2004 2025 2026 1 Pin boned secured on the boo deductible when fund 130900 $20.900 $10,000 2 van collected in advanced credor accounting purposes and when neceived for 2000 2 24000 4. (3000 CA200 tament ght ne c umon for accounting purgines and CCA for tax purposes 90000 $4900 30.0001 45300 140,000 1000) The bears in Noventer 2023 e rate was changed to 2% for alter after buy 1, 2005. A that the company has income tax due of $181 000 on the 2023 tai reture and th tal news should be rember 25, 20 BLOSSOM CORPORATION
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