DEFERRED TAX EXAMPLE 1 ABC Inc. has asked you to assist in the completion of their 2018 tax provision. They have provided you with the following information; NBV at 12/31/2017 UCC at 12/31/2017 Warranty provision Tax rate $600,000 320,000 80,000 45% The following transactions occurred during 2018: Income before taxes Depreciation Warranty provision Actual warranty expenditures Class 8 additions Disallowed entertainment Dividends from a taxable Canadian corporation $1,600,000 160,000 50,000 70,000 200,000 75,000 100,000 REQUIRED 1. Prepare a reconciliation of accounting income to income for tax purposes 2. Prepare the journal entries to record the 2018 tax provision DEFERRED TAX EXAMPLE 1 ABC Inc. has asked you to assist in the completion of their 2018 tax provision. They have provided you with the following information; NBV at 12/31/2017 UCC at 12/31/2017 Warranty provision Tax rate $600,000 320,000 80,000 45% The following transactions occurred during 2018: Income before taxes Depreciation Warranty provision Actual warranty expenditures Class 8 additions Disallowed entertainment Dividends from a taxable Canadian corporation $1,600,000 160,000 50,000 70,000 200,000 75,000 100,000 REQUIRED 1. Prepare a reconciliation of accounting income to income for tax purposes 2. Prepare the journal entries to record the 2018 tax provision