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I urgently need help in tis. Please take a look into this ASAP. Regards At December 31, 2022, Blossom Corporation had a temporary difference (related
I urgently need help in tis. Please take a look into this ASAP. Regards
At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $30,900 on its balance sheet. At December 31,2023 , Blossom has five temporary differences. An analysis reveals the following: Temporary Difference 1. Pension liability: expensed as incurred on the books; deductible when funded for tax purposes 2. Royalties collected in advance: recognized when earned for accounting purposes and when received for tax purposes 3. Accrued liabilities: various expenses accrued for accounting purposes and recognized for tax purposes when paid 4. Deferred gross profit: profits recognized on instalment sales when sold for book purposes, and as collected for tax purposes 5. Equipment: straight-line depreciation for accounting purposes, and CCA for tax purposes The enacted tax rate has been 30% for many years. In November 2023, the rate was changed to 28% for all periods after January 1 , 2025. Assume that the company has income tax due of $180,000 on the 2023 tax return and that Blossom follows IFRS. Indicate how deferred taxes should be presented on Blossom's December 31, 2023 SFP. Calculate taxable income for 2023. Taxable income $ Calculate accounting income for 2023. Accounting income $ ne tax At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $30,900 on its balance sheet. At December 31,2023 , Blossom has five temporary differences. An analysis reveals the following: Temporary Difference 1. Pension liability: expensed as incurred on the books; deductible when funded for tax purposes 2. Royalties collected in advance: recognized when earned for accounting purposes and when received for tax purposes 3. Accrued liabilities: various expenses accrued for accounting purposes and recognized for tax purposes when paid 4. Deferred gross profit: profits recognized on instalment sales when sold for book purposes, and as collected for tax purposes 5. Equipment: straight-line depreciation for accounting purposes, and CCA for tax purposes The enacted tax rate has been 30% for many years. In November 2023, the rate was changed to 28% for all periods after January 1 , 2025. Assume that the company has income tax due of $180,000 on the 2023 tax return and that Blossom follows IFRS. Indicate how deferred taxes should be presented on Blossom's December 31, 2023 SFP. Calculate taxable income for 2023. Taxable income $ Calculate accounting income for 2023. Accounting income $ ne taxStep by Step Solution
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