Solve attached

Brocklin Ltd (BL) is a retailer with a December 31 year end. The comptroller at BL has recently resigned, and you were hired to assist the senior accountant to prepare the required 20X3 year-end adjustments. Your work is pretty much complete, except for the income tax journal entries that remain to be prepared. You have summarized the relevant information as follows:

1) Income before income taxes amounts to $310,000 for 20X3.

2) At the end of 20X2, BL had a loss carryforward of $80,000. On 31 December 20X2, management considered that it was more probable than not that future taxable income would be sufficient to take advantage of this loss.

3) During 20X3, BL received intercorporate dividends totaling $70,000 which are not taxable.

4) At the beginning of 20X3, the undepreciated capital cost amounted to $950,000 and the carrying value of capital assets was $1,200,000. The amortization expense and capital cost allowance deduction amount respectively to $200,000 and $230,000 for 20X3. There were no acquisitions or disposals of fixed assets in 20X3.

5) In 20X3, the company incurred entertainment costs of $40,000 out of which 50 % is not deductible for tax purposes.

6) BL has introduced a defined benefit pension plan in 20X3. The total costs related to this plan amount to $160,000 for 20X3 and are detailed as follows: Service cost: $150,000; Net interest: $10,000; Remeasurements: $0. The amount deductible for tax purposes corresponds to the contributions of $100,000 made by BL to the plan in 20X3.

7) At the beginning of 20X2, BL signed an operating lease (as a lessee). Annual payments made under this lease contract are $100,000 and are totally deductible for tax purposes. When BL signed this contract, the lessor required an additional lump sum payment of $40,000 which was immediately deductible for tax purposes. For accounting purposes, BL considered this amount as a prepaid rent, and amortizes it over a period of four years. A prepaid rent of $30,000 was reported on the balance sheet at 31 December 20X2.

8) BL made income tax instalments of $60,000 in 20X3. The company also received a tax refund of $20,000 in relation to its tax loss of 20X2. Indeed, part of this loss was carried back to recover income taxes paid in previous years.

9) The tax rate was 30 % in 20X2. On 30 November 20X3, it increased to 35 % and this rate applied to 20X3 fiscal year. On 15 January, government announced another increase in corporate tax rates applicable from 1 January 20X4. As a consequence, BL's tax rate increased to 40 %.

Required

1) Prepare the journal entries to record the income tax expense for 20X3.

2) Prepare the lower part of the income statement for 20X3 that will show the current and future portions of the income tax expense.

3) Provide a partial balance sheet as of 31December 20X3 that will present the accounts and amounts related to income taxes.

4) Provide a partial cash flow statement for 20X3 that will present the accounts and amounts related to income taxes.

5) Prepare the effective tax rate required disclosures for 20X3. Provide this note using percentages.

Question 2; Consider a country producing milk and cookies using labor and capital as inputs described by a Heckscher-Ohlin model. The following table provides outputs for goods and factor endowments before and after a change in the endowments. Output and Endowments Initial Aer Endowment Change Milk Output, QM 100 gallons 110 gallons Cookie Output, QC 100 pounds 80 pounds Labor Endowment, L 4000 hours 4200 hours Capital Endowment: K 1000 hours 1000 hours :1) Calculate and rank the magnication effect for quantities in response to the endowment change. b) Which product is capital intensive? Show why. c) Which product is labor intensive? Show why. Question 2: Consider a country producing milk and cookies using labor and capital as inputs described by a Heckscher-Ohlin model. The following table provides outputs for goods and factor endowments before and after a change in the endowments. Output and Endowments Initial After Endowment Change Milk Output, QM 100 gallons 1 10 gallons Cookie Output, Qc 100 pounds 80 pounds Labor Endowment, L 4000 hours 4200 hours Capital Endowment, K 1000 hours 1000 hours a) Calculate and rank the magnification effect for quantities in response to the endowment change. b) Which product is capital intensive? Show why. c) Which product is labor intensive? Show why.Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales O debit to Cash and a credit to Sales debit to Cash, credit to Credit Card Expense, and a credit to Sales debit to Sales, debit to Credit Card Expense, and a credit to CashPada Restaurants accepts credit and debit cards as forms of payment. Assume Pada had $13,000 of credit and debit card sales on June 30, 2015. 1. Suppose Pada's processor charges a 4% fee and deposits sales net of the fee, Journalize the sale transaction for the restaurant. 2. Suppose Pada's processor charges a 4% fee and deposits sales using the gross method. Journalize the sale transaction for the restaurant. Date Accounts and Explanation Debit Credit Jun, 30 Cash Sales Revenue Recorded credit card sales, net of fee. Now journalize the sale transaction using the gross method for the restaurant. Date Accounts and Explanation Debit Credit Jun, #30 Cash Credit Card Expense Sales Revenue Recorded credit card sales Choose from a10202019 Chapter 7 Homework-Nickisha Lun Accounts and Explanation Dabit Credit 16 (17) (20) 1: Data Table National Express credit card sales $ 11,700 ValueCard debit card sales 7.000 2: Requirements 1. Suppose Winter Retreats" processor charges a 3% fee and deposits sales net of the fee. Journalize these sales transactions for the restaurant. Suppose Winter Retreats' processor charges a 3% fee and deposits sales using the gross method, Journalize these sales transactions for the restaurant. (1) O Credit Card Expense O Accounts Receivable-National Express O Sales Revenue O Accounts Receivable-ValueCard O Cash (2) O O Credit Card Expense O Accounts Receivable-National Express O Sales Revenue O Accounts Receivable-ValueCard O Cash (3) O O Credit Card Expense O Accounts Receivable-National Express O Sales Revenue O Accounts Receivable-ValueCard O Cash (4) 0 O Credit Card Expense O Accounts Receivable-National Express O Sales Revenue O Accounts Receivable-ValueCard O Cash (5) O O Recorded credit card sales. O Recorded credit card sales, net of fee. O Sold goods on account. (6) O O Credit Card Expense O Accounts Receivable-National Express O Sales Revenue O Accounts Receivable-ValueCard O Cash