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Carla Vista Limited had investments in securities on its SFP for the first time at the end of its fiscal year ended December 3 1
Carla Vista Limited had investments in securities on its SFP for the first time at the end of its fiscal year ended December Carla Vista reports under IFRS and its investments in securities are to be accounted for at fair value through net income. During realized losses and gains on the trading of shares and bonds resulted in investment income, which is fully taxable in the year. Carla Vista also accrued unrealized gains at December which are not taxable until the investment securities are sold. The portfolio of trading securities had an original cost of $ and a fair value on December of $ The entry recorded by Carla Vista on December was as follows: FVNI Investments Investment Income or Loss Income before income tax for Carla Vista was $ for the year ended December There are no other permanent or reversing differences in arriving at the taxable income for Carla Vista for the fiscal year ended December The enacted tax rate for and future years is Assume that the company reports under ASPE and that the taxes payable method of accounting is used for income tax. a Prepare the journal entry to record income tax at December List debit entry before credit entry. 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 for the amounts. Date Account Titles and Explanation Debit Credit December
Carla Vista Limited had investments in securities on its SFP for the first time at the end of its fiscal year ended December
Carla Vista reports under IFRS and its investments in securities are to be accounted for at fair value through net income. During
realized losses and gains on the trading of shares and bonds resulted in investment income, which is fully taxable in the year. Carla
Vista also accrued unrealized gains at December which are not taxable until the investment securities are sold. The portfolio
of trading securities had an original cost of $ and a fair value on December of $ The entry recorded by Carla
Vista on December was as follows:
FVNI Investments
Investment Income or Loss
Income before income tax for Carla Vista was $ for the year ended December There are no other permanent or
reversing differences in arriving at the taxable income for Carla Vista for the fiscal year ended December The enacted tax
rate for and future years is Assume that the company reports under ASPE and that the taxes payable method of accounting
is used for income tax.
a
Prepare the journal entry to record income tax at December List debit entry before credit entry. 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 for the amounts.
Date
Account Titles and Explanation
Debit
Credit
December
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