Martinez Inc. reports accounting income of $102,000 for 2020, its first year of operations. The following items cause taxable income to be different than income reported on the financial statements. 1. 2. 3. Capital cost allowance on the tax return) is greater than depreciation on the income statement by $12,500. Rent revenue reported on the tax return is $18,750 higher than rent revenue reported on the income statement. Non-deductible fines appear as an expense of $9,500 on the income statement. Martinez's tax rate is 30% for all years and the company expects to report taxable income in all future years. Martinez reports under IFRS. 4. Calculate taxable income and income tax payable for 2020. Taxable income for 2020 $ Income tax payable for 2020 $ Calculate any deferred tax balances at December 31, 2020. Deferred tax $ Prepare the journal entries to record income taxes for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit Year Account Titles and Explanation 2020 (To record current tax expense) 2020 (To record deferred tax benefit) Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income tax." Martinez Inc. (Partial) Income Statement $ $ $ Reconcile the statutory and effective rates of income tax for 2020. (Round percentages to 1 decimal place, e.g. 25.7%.) Divided by Accounting Income @ 30% $ $ Provide the SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020. Provide the SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020. Martinez Inc. (Partial) Balance Sheet $ $ Provide the SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020. Assume that Martinez follows ASPE. Martinez Inc. (Partial) Balance Sheet Provide the SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020. Assume that Martinez follows ASPE. Martinez Inc. (Partial) Balance Sheet $ Martinez Inc. reports accounting income of $102,000 for 2020, its first year of operations. The following items cause taxable income to be different than income reported on the financial statements. 1. 2. 3. Capital cost allowance on the tax return) is greater than depreciation on the income statement by $12,500. Rent revenue reported on the tax return is $18,750 higher than rent revenue reported on the income statement. Non-deductible fines appear as an expense of $9,500 on the income statement. Martinez's tax rate is 30% for all years and the company expects to report taxable income in all future years. Martinez reports under IFRS. 4. Calculate taxable income and income tax payable for 2020. Taxable income for 2020 $ Income tax payable for 2020 $ Calculate any deferred tax balances at December 31, 2020. Deferred tax $ Prepare the journal entries to record income taxes for 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit Year Account Titles and Explanation 2020 (To record current tax expense) 2020 (To record deferred tax benefit) Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income tax." Martinez Inc. (Partial) Income Statement $ $ $ Reconcile the statutory and effective rates of income tax for 2020. (Round percentages to 1 decimal place, e.g. 25.7%.) Divided by Accounting Income @ 30% $ $ Provide the SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020. Provide the SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020. Martinez Inc. (Partial) Balance Sheet $ $ Provide the SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020. Assume that Martinez follows ASPE. Martinez Inc. (Partial) Balance Sheet Provide the SFP presentation for any resulting deferred tax balance sheet accounts at December 31, 2020. Assume that Martinez follows ASPE. Martinez Inc. (Partial) Balance Sheet $
