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Sheridan Inc. reports accounting income of $102,000 for 2023, its first year of operations. The following items cause taxable income to be different than
Sheridan Inc. reports accounting income of $102,000 for 2023, 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 $11,600. 2. Rent revenue reported on the tax return is $17,400 higher than rent revenue reported on the income statement. 3. 4. Non-deductible fines appear as an expense of $9,100 on the income statement. Sheridan's tax rate is 30% for all years and the company expects to report taxable income in all future years. Sheridan reports under IFRS. Prepare the journal entries to record income taxes for 2023. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account title and enter O for the amounts. Do not net entries to deferred tax asset and deferred tax liability) Year Account Titles and Explanation 2023 Current Tax Expense 2023 Income Tax Payable (To record current tax expense) Deferred Tax Benefit Debit Credit 35070 1740 35070 1740
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