QUESTION DATA. Elegant Flowers Inc (EF) began operations in 2018. You, senior accountant of EFL we working on the 2020 years DEFERRED tax calculation and noted the following information (3) The the rate for 2016 and 2019 was sok. A new tax rate of 25% was enacted into low on August 2, 2020 for 2000 and uter. As a publically accountable enterprise. En follows FRS. 121. El purchased toy manutacturing equipment on January 1, 2018 for $1,000,000. EFI depreciate the equipment for account purposes usinga straight-line banks or $22.500 per year. CCA for 2020 a $146.000. In prior years, comte CCA orded comdi depreciation expense by $95,000 (3) On December 31, 2018, Eft paid $270,000 in advance for a three-year advertising campaign with national toy store. The advertising campaign covers the period January 1, 2019 - December 31, 2021. The entire $270,000 was deducted for tax purposes in 2018 14). Estimated losses of $80,000 on a pending lawsuit and claim were accrued for financial reporting purposes during the year ended December 31 2020. These losses are tax deductible in the period when the related ability settled. Legal counsel pects them to be atted in the summer of 2001 REQUIRED 11. Complete the schedule below to calculate deferred income tax expense for the year ended December 31, 2020. Ale cells we to be completed. Waculis cere, use rather than leaving blank. The subtotal formulas for accounting and tax to date are entered for you and will be remically when you enter stata above the subtotal ITEM OR/CRI Acct to date Tax to date Deductible Table Terary Difference Kate Deferred TEM Asset [Uability Toy Manufacturing equipment % an 1/20 2020 Dec 31/20 50 Advertising campaign 2018 2019 lan 1/20 2020 Dec 31/20 Lawsuit 1/20 2020 Dec 1/20 12). Prepare all appropriate journal entries to record the 2020 deterred income taxes for E. Foliow the journal y desertitions be with the journal entry Account Title Debit Credit Date Dec 31/20 Record deferred income foxes on toyment Dec. 31/20 Record deferred income Tours On Advertising campaign Dec. 31/20 Record deferred income Pexes on pending out B). What account and amount will appear an Efts Income statement for the year ending December 31, 2020? Use the drop down benes te select the propriate account name Account name Amount 4. What account and amount will appear on Ets Statement of Financial Position as at December 31, 2020? Une the true tout bote to select the appropriate account name under the classification provided Classification Account Name Amount QUESTION DATA. Elegant Flowers Inc (EF) began operations in 2018. You, senior accountant of EFL we working on the 2020 years DEFERRED tax calculation and noted the following information (3) The the rate for 2016 and 2019 was sok. A new tax rate of 25% was enacted into low on August 2, 2020 for 2000 and uter. As a publically accountable enterprise. En follows FRS. 121. El purchased toy manutacturing equipment on January 1, 2018 for $1,000,000. EFI depreciate the equipment for account purposes usinga straight-line banks or $22.500 per year. CCA for 2020 a $146.000. In prior years, comte CCA orded comdi depreciation expense by $95,000 (3) On December 31, 2018, Eft paid $270,000 in advance for a three-year advertising campaign with national toy store. The advertising campaign covers the period January 1, 2019 - December 31, 2021. The entire $270,000 was deducted for tax purposes in 2018 14). Estimated losses of $80,000 on a pending lawsuit and claim were accrued for financial reporting purposes during the year ended December 31 2020. These losses are tax deductible in the period when the related ability settled. Legal counsel pects them to be atted in the summer of 2001 REQUIRED 11. Complete the schedule below to calculate deferred income tax expense for the year ended December 31, 2020. Ale cells we to be completed. Waculis cere, use rather than leaving blank. The subtotal formulas for accounting and tax to date are entered for you and will be remically when you enter stata above the subtotal ITEM OR/CRI Acct to date Tax to date Deductible Table Terary Difference Kate Deferred TEM Asset [Uability Toy Manufacturing equipment % an 1/20 2020 Dec 31/20 50 Advertising campaign 2018 2019 lan 1/20 2020 Dec 31/20 Lawsuit 1/20 2020 Dec 1/20 12). Prepare all appropriate journal entries to record the 2020 deterred income taxes for E. Foliow the journal y desertitions be with the journal entry Account Title Debit Credit Date Dec 31/20 Record deferred income foxes on toyment Dec. 31/20 Record deferred income Tours On Advertising campaign Dec. 31/20 Record deferred income Pexes on pending out B). What account and amount will appear an Efts Income statement for the year ending December 31, 2020? Use the drop down benes te select the propriate account name Account name Amount 4. What account and amount will appear on Ets Statement of Financial Position as at December 31, 2020? Une the true tout bote to select the appropriate account name under the classification provided Classification Account Name Amount
