During 2021, GME Corp. reported a depreciation expense of $800,000 on its income statement. On its 2021 income tax return, GME claimed CCA of $1,200,000. Also included in the 2021 income statement was $150,000 in accrued warranty expense. This will be deducted for tax purposes when paid. GME's income tax rates are 30% for 2021 and 2022, and 24% for 2023 and 2024. Over the next 3 years, the depreciation difference and warranty expense will reverse as follows: 2022 - Depreciation Difference $160,000 / Warranty Expense - $30,000 2023 - Depreciation Difference $140,000/Warranty Expense - $50,000 2024 - Depreciation Difference $100,000/Warranty Expense - $70,000 These are GME's only "reversible" differences. As of Dec 31, 2021, GME's deferred tax liability should be: O a $75,000.00 Ob $133,800.00 Oc $73,200.00 od $67,800.00 After it's first year of operations, the end of 2021, Saskatchewan Corp. reconciled their "taxable" income and "pre-tax" accounting income in the following: "Pre-tax" Accounting Income: $600,000 "Instalment" Sales: $-1,200,000 "Estimated" Lawsuit Expense: $1,500,000 "Taxable" Income: $900,000 They "estimate" a lawsuit expense of $1,500,000 will be deductible in 2023 when they expect to pay it. They will realize "instalment" sales at $600,000 in each of the next two years. Saskatchewan Corp's tax rate is 30% for all years. Saskatchewan corp will report total income tax expense on their 2021 income statement of: O a. $180,000.00 ob O b. $270,000.00 Oc $600,000.00 Od $300,000.00 For it's first three years of operations, Jumper Co. reported the following results: 2020 income before taxes - $20,000 2021 loss before taxes - $(180,000) 2022 income before taxes - $200,000 Throughout these 3 years, there were no reverisble or permanent differences. Jumper has a tax rate of 30% for 2020 and 2021, and 40% for 2022, and assume that any "deferred" tax asset recognized is "more likely than not to be realized". What income (loss) is reported for 2021 if Jumper elects to use the carryback provisions? O a. $0 O b. Loss of $110,000 Oc Loss of $180,000 Od Loss of $174,000 In "defined" contribution plans, a formula is generally used used that: O a requires an employer to make certain fixed contributions each period based on the formula. O b. defines the benefits that the employee will be provided at retirement. O makes sure that pension expense and the cash funding amount will be different. O d. makes sure that employers are not at risk to ensure funds are available at retirement. The information below relates to the Orange & Pear Co. (O&P) 2021 calendar year. O&P follows IFRS. Defined Benefit Obligation (DBO) - Jan 1 .............. $360,000 Fair Value (FV) of plan assets - Jan 1.......... .350,000 Current Service Cost............. .45,000 "Contributions" to plan......... .62,500 Actual (and expected) return on plan assets.......... ..28,000 Past service costs (effective as of Jan 1............. ....5,000 Actual benefits paid to retirees....... .48,000 Assuming an interest (discount) rate of 9%, what is the balance of the Defined Benefit Obligation (DBO) as of Dec 31, 2021? O a $389,850.00 O b. $ 362,000.00 Oc. $ 394,850.00 Od $389,400.00
