ion 4 (28 Marks) Jasmine Corporation completed its first year of operations in 2015. During 2015 capital assets totalling $780,000 were purchased with none for 2016 The Company has reported accounting income before tax of $800,000 in 2015 Included in this amount are golf membership dues of $5,000, accrued warranty expenses of $100,000, depreciation $94,000 and dividends from a taxable Canadian Corporation of $15,000. For tax purposes, CCA for the year amounted to $80,000 and eligible warranty costs were $65,000 The Company has reported accounting income before tax of $950,000 in 2016 Included in this amount were accrued warranty expenses of $100000, depreciation $90,000 and there were no dividends from a taxable Canadian Corporation. For tax purposes, CCA for the year amounted to $90,000 and eligible warranty costs were $100,000 All temporary differences will reverse in 2016, At the end of 2015 the enacted corporate tax rate was 38% Late in 2016, the government reduced the enacted tax rate to 37% for 2016 and 36% for 2017. Required 1. What are the 2015 differences permanent or temporary? 2 Calculate taxable income for 2015 3. Prepare the entry to record income tax expense for 2015 4. Prepare the entry to record income tax expense for 2016