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Determine the balance of any deferred tax asset or liability accounts at December 3 1 , 2 0 2 2 , 2 0 2 3
Determine the balance of any deferred tax asset or liability accounts at December and Enter deferred tax liabilities using either a negative sign preceding the number eg or parentheses egThe accounting records of Blossom Corp., a real estate developer, indicated income before income tax of $ for its year ended December and of $ for the year ended December The following data are also available. Blossom pays an annual life insurance premium of $ covering the top management team. The company is the named beneficiary. The carrying amount of the company's property, plant, and equipment at January was $ and the UCC at that date was $ Blossom recorded depreciation expense of $ and $ in and respectively. CCA for tax purposes was $ and $ for and respectively. There were no asset additions or disposals over the twoyear period. Blossom deducted $ as a restructuring charge in determining income for At December an accrued liability of $ remained outstanding relative to the restructuring, which was expected to be completed in the next fiscal year. This expense is deductible for tax purposes, but only as the actual costs are incurred and paid for. The actual restructuring of operations took place in and with the liability reduced to $ at the end of and to $ at the end of In property held for development was sold and a profit of $ was recognized in income. Because the sale was made with delayed payment terms, the profit is taxable only as Blossom receives payments from the purchaser. A down payment was received in with the remaining expected in equal amounts over the following three years. Nontaxable dividends of $ in and of $ in were received from taxable Canadian corporations. In addition to the income before income tax identified above, Blossom reported a beforetax gain on discontinued operations of $ in A rate of tax has been in effect since Blossom follows IFRS.
Determine the balance of any deferred tax asset or liability accounts at December and Enter deferred tax
liabilities using either a negative sign preceding the number eg or parentheses egThe accounting records of Blossom Corp., a real estate developer, indicated income before income tax of $ for its year ended
December and of $ for the year ended December The following data are also available.
Blossom pays an annual life insurance premium of $ covering the top management team. The company is the named
beneficiary.
The carrying amount of the company's property, plant, and equipment at January was $ and the UCC at
that date was $ Blossom recorded depreciation expense of $ and $ in and respectively.
CCA for tax purposes was $ and $ for and respectively. There were no asset additions or
disposals over the twoyear period.
Blossom deducted $ as a restructuring charge in determining income for At December an accrued
liability of $ remained outstanding relative to the restructuring, which was expected to be completed in the next
fiscal year. This expense is deductible for tax purposes, but only as the actual costs are incurred and paid for. The actual
restructuring of operations took place in and with the liability reduced to $ at the end of and to $ at
the end of
In property held for development was sold and a profit of $ was recognized in income. Because the sale was
made with delayed payment terms, the profit is taxable only as Blossom receives payments from the purchaser. A down
payment was received in with the remaining expected in equal amounts over the following three years.
Nontaxable dividends of $ in and of $ in were received from taxable Canadian corporations.
In addition to the income before income tax identified above, Blossom reported a beforetax gain on discontinued operations
of $ in
A rate of tax has been in effect since
Blossom follows IFRS.
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