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Bramble Corp. reported the following differences between statement of financial position carrying amounts and tax bases at December 31, 2016: Carrying Amount Tax Base $71,550
Bramble Corp. reported the following differences between statement of financial position carrying amounts and tax bases at December 31, 2016:
Carrying Amount Tax Base $71,550 Depreciable asset:s Warranty liability (current liability) Pension liability (long-term liability) $106,000 20,500 39,600 The differences between the carrying amounts and tax bases were expected to reverse as follows: 2017 2018 After 2018 Depreciable asset:s Warranty liability Accrued pension liability $16,000 $12,500 $5,950 20,500 12,000 11,000 16,600 Tax rates enacted at December 31, 2016 were 33% for 2016, 32% for 2017, 31% for 2018, and 30% for 2019 and later years During 2017, Bramble Corp. made four quarterly tax instalment payments of $7,500 each and reported income before income tax on its income statement of $111,100. Included in this amount were dividends from taxable Canadian corporations of $4,100 (non-taxable income) and $20,000 of expenses related to the executive team's golf dues (non-tax deductible expenses). There were no changes to the enacted tax rates during the year As expected, book depreciation in 2017 exceeded the capital cost allowance claimed for tax purposes by $16,000, and there were no additions or disposals of property, plant, and equipment during the year. A review of the 2017 activity itn the Warranty Liability account in the ledger indicated the followingStep by Step Solution
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