Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please i only need answer for F and G with detailed explaination E18.15 (LO 3, 4, 8, 9) (Permanent and Reversing Differences, Calculating Taxable income,

image text in transcribed

Please i only need answer for F and G with detailed explaination

E18.15 (LO 3, 4, 8, 9) (Permanent and Reversing Differences, Calculating Taxable income, Entry for Taxes) Zdon Inc. reports accounting income of $105,000 for 2020, its first year of operations. The following items cause taxable income to be different than income reported on the financial statements. 1. Capital cost allowance on the tax return) is greater than depreciation on the income statement by $16,000. 2. Rent revenue reported on the tax return is $24,000 higher than rent revenue reported on the income statement. 3. Non-deductible fines appear as an expense of $15,000 on the income statement. 4. Zdon's tax rate is 30% for all years and the company expects to report taxable income in all future years. Zdon reports un IFRS. Instructions a. Calculate taxable income and income tax payable for 2020. b. Calculate any deferred tax balances at December 31, 2020. c. Prepare the journal entries to record income taxes for 2020. d. Prepare the income tax expense section of the income statement for 2020, beginning with the line Income before income tax." e. Reconcile the statutory and effective rates of income tax for 2020. Round rates to one decimal place. f. Provide the SFP presentation for any resulting deferred tax accounts at December 31, 2020. Be specific about the classification. g. Repeat part (1) assuming Zdon follows ASPE

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud examination

Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma

4th edition

538470844, 978-0538470841

More Books

Students also viewed these Accounting questions

Question

=+What kind of study is this?

Answered: 1 week ago

Question

Know the components of a position description

Answered: 1 week ago

Question

Explain the value of a true open-door policy

Answered: 1 week ago