Question 3 In 2017, Flounder Ltd., which follows IFRS, reported accounting income of $1,090,000 and the 2017 tax rate was 20%. Flounder had two timing differences for tax purposes CCA on the company's tax return was $471,000. Depreciation expense on the financial statements was $270,000. These amounts relate to assets that were acquired on January 1, 2017, for $1,884,000 Accrued warranty expense for financial statement purposes was $148,000 (accrued expenses are not deductible for tax purposes). This is the first year Flounder offers warranties. Both of these timing differences will fully reverse over the next four years, as follows: Depreciation Warranty Year Difference Expense $21,000 33,000 41,000 53,000 $201,000 $148,000 2018 2019 2020 2021 $67,000 57,000 43,000 34,000 Rate 20% 20% 18% 18% Calculate income taxes payable for 2017 Income taxes payable Question 3 In 2017, Flounder Ltd., which follows IFRS, reported accounting income of $1,090,000 and the 2017 tax rate was 20%. Flounder had two timing differences for tax purposes CCA on the company's tax return was $471,000. Depreciation expense on the financial statements was $270,000. These amounts relate to assets that were acquired on January 1, 2017, for $1,884,000 Accrued warranty expense for financial statement purposes was $148,000 (accrued expenses are not deductible for tax purposes). This is the first year Flounder offers warranties. Both of these timing differences will fully reverse over the next four years, as follows: Depreciation Warranty Year Difference Expense $21,000 33,000 41,000 53,000 $201,000 $148,000 2018 2019 2020 2021 $67,000 57,000 43,000 34,000 Rate 20% 20% 18% 18% Calculate income taxes payable for 2017 Income taxes payable