Question
Deferred Taxes Aylmer is a publicly-traded company, it follows IFRS, Aylmer has a corporate tax rate of 30%. There are two differences that have been
Deferred Taxes
Aylmer is a publicly-traded company, it follows IFRS,
Aylmer has a corporate tax rate of 30%.
There are two differences that have been identified:
Assume that CCA (Capital Cost Allowance) for tax purposes was $10,000 more that straight-line depreciation calculated. Included in administrative expenses are golf club dues that total $2,400.
There was no deferred tax liability or asset in 2019 or prior years.
Please make any needed calculations, including an amortization schedule, to support journal entries. And create any required journal entries
| a) Calculate taxable income for 2020: | ||||||||
| Accounting Income | 500,000 | ASSUME THIS IS CORRECT! | ||||||
| b) Calculate the deferred tax asset or liability at Dec 31, 2020 | ||||||||
| BV | deductible | balance | ||||||
| tax | asset | (taxable) | tax | DT Asset | ||||
| Account | base | (liability) | difference | rate | (DT Liab) | |||
| c) Prepare any adjusting entries that would be required related to income tax for 2020. | ||||||||
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
