Melissa Corporation is domiciled in Germany and is Iisted on both the Frankfurt and New York Stock Exchanges. Melissa has chosen to

prepare consolidated financlal statements in accordance with U$.$S$.$ GA$.$P$.$P for filing with the U$.$S$.$ Securitles and Exchange Commission

but must also prepare consolidated financlal statements in accordance with IFRS in accordance with European Union regulations.

On December $31,20$X$0,$ Melissa Corporation purchased a small office bullding for $$1,380,000.$ For tax and financlal reporting

purposes, Melissa estimates that the bullding has a useful life of $40$ years with an estimated residual value of $$100,000.$ Melissa uses

stralght$-$Ine depreclation for financlal reporting. Assume that, for tax purposes, Melissa is permitted to deduct $5\%$ of an asset's

depreclable base in $20$X$1.$ This is the only bullding that Melissa owns.

At the end of $20$X$1,$ Melissa had the bullding appralsed by a qualfied real estate appraiser, who estlmated the falr value of the building

to be $$1,172,500.$ Melissa intends to occupy the bullding Itself, and, therefore, the bullding is classified as property, plant, and

equlpment under both U$.$S$.$ GAAP and IFRS. After belng revalued under IFRS, the Bulling account has a balance of $$1,172,500$ and the

Accumulated depreclation account has a balance of zero. Assume Melissa will have sufficlent income in the future to recover any

deferred tax assets that might be recognized.

Required:

Calculate Melissa's taxable income in $20$X$1.$

Prepare the journal entry to record Mellssa's $201$ income tax actlvity under U$.$S$.$ GAAP.

Prepare the journal entry to record Melissa's $20$X$1$ income tax activity under IFRS.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req $2$A and $3$A Req $2B$ and $3B$

$2-$a$.$ Prepare the journal entry to record Melissa's $201$ income tax activity under U$.$S$.$ GA$.$A$.$

$3-$a$.$ Prepare the journal entry to record Melissa's $201$ income tax activity under IFRS.

$($If no entry is required for a particular transaction, select $"$No journal entry required" in the first account field.$)$