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Bryan Trucking Corporation began business on January 1 20x1, and consists of the parent entity, domiciled and operating in Country X, and a subsidiary operating

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Bryan Trucking Corporation began business on January 1 20x1, and consists of the parent entity, domiciled and operating in Country X, and a subsidiary operating in Country Y Bryan is required, as a listed company in Country X. to prepare financial statements using IFRS Bryan is also listed on the New York Stock Exchange (NYSE). Therefore, Bryan is registered as a foreign private issue with the US Securities and Exchange Commission and must file financial statements with the SEC in accordance with SEC regulations for foreign private Issuers. These regulations permit. Bryan to file its IFRS financial statements with the SEC, but it has decided to prepare US. GAAP financial statements as well for the convenience of its US shareholders with respect to the reconciliation of the statutory tax rate to the effective tax rate in the income tax note disclosure SEC regulations for foreign private issuers permit them to reconcile to either the relevant statutory income tax rate in their country of domicile or to another applicable tax rate Reconciling to the statutory income tax rete in its country of domicile would be comparable to a US company reconciling to the US federal tax rate Bryan carefully selected its accounting policies under IFRS and US GAAP so that, in 20x1, it reported the same pre-tax book income in both the US GAAP and IFRS financial statements. Therefore, the only difference between the tax rate reconciliation in the US GAAR financial statements and the IFRS financial statements is due to the use of a country specific statutory tax rate (statutory tax rate in Country X) or a weighted average statutory tax rate (another applicable tax rate) as the beginning point of the reconciliation The table below presents Bryan's pre-tax book Income and the applicable statutory tax rates in each country and permanent differences between taxable and book income in the two countries in which Biyon operates Bryan has no temporary differences in 20X1 Pre-tax book income Permanent differences: Tax exempt income Hondeductible expense Applicable statutory tax rates in 20X1 Country x Country r Total $1,250,000 $1,100,000 $2,350,000 5 10,000 $ 60.ee $100,000 $ 25,000 $ 35,000 $ 60.ee 21% Both Country X and Country Y tax only profits earned within the country Required: Prepare the portion of the income tax note that details the reconciliation of the statutory or other applicable tax rate to the effective tax rate as follows 1. Assume Bryan uses the statutory tax rate in Country X for the tax rate reconciliation in its US GAAP financial statements. 2. Assume Bryan uses a weighted average statutory rate for the tax rate reconciliation in its IFRS financial statements Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume Bryan uses the statutory tax rate in Country x for the tax rate reconciliation in its U.S. GAAP financial statements (Amounts to be deducted should be indicated by a minus sign. Round "Rate" answers to 2 decimal places) Reconciliation Amounts Roto Tax on peetax income based on statutory rate in County X Adjustment for tax exempt income 98 Adjustment for non deductible expenses Adjustment in respect of difference in foreign tax rates Total income tax expense $ 0 0001 Required 2 >

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