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Bramble Corporation purchased equipment very late in 2017. Based on generous capital cost allowance rates provided in the Income Tax Act, Bramble Corporation claimed CCA
Bramble Corporation purchased equipment very late in 2017. Based on generous capital cost allowance rates provided in the Income Tax Act, Bramble Corporation claimed CCA on its 2017 tax return but did not record any depreciation because the equipment had not yet been put into use. This temporary difference will reverse and cause taxable amounts of $34,600 in 2018, $30,800 in 2019, and $42,400 in 2020. Bramble's accounting income for 2017 is $233,600 and the tax rate is 35% for all years. There are no deferred tax accounts at the beginning of 2017 Your answer is partially correct. Try again. Calculate the deferred tax balance at December 31, 2017. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) 7730 Deferred tax Your answer is incorrect. Try again. Calculate taxable income and income tax payable for 2017 Taxable income 341400 Income tax payable Your answer is partially correct. Try again. Prepare the journal entries to record income taxes for 2017. (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 O for the amounts.) Year Account Titles and Explanation Debit Credit 2017 Curent Tax Expense 43400 Income Tax Pavab 341400 To record current taxes.) 2017 Deferred Tax Expen 119490 eferred Tax Liabili 19490 To record deferred taxes.)
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