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Riverbed Corporation purchased equipment very late in 2020. Based on generous capital cost allowance rates provided in the Income Tax Act, Riverbed Corporation claimed CCA
Riverbed Corporation purchased equipment very late in 2020. Based on generous capital cost allowance rates provided in the Income Tax Act, Riverbed Corporation claimed CCA on its 2020 tax return but did not record any depreciation because the equipment was being tested. This temporary difference will reverse and cause taxable amounts of $34,900 in 2021, $32,500 in 2022, and $47,200 in 2023. Riverbed's accounting income for 2020 is $251,200 and the tax rate is 30% for all years. There are no deferred tax accounts at the beginning of 2020.
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