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TI Current Attempt in Progress The accounting records of Whispering Winds Corp, a real estate developer, indicated income before income tax of $856.000 for its
TI Current Attempt in Progress The accounting records of Whispering Winds Corp, a real estate developer, indicated income before income tax of $856.000 for its year ended December 31, 2020, and of $560,000 for the year ended December 31, 2021. The following data are also available. 1 Whispering Winds Corp. pays an annual life insurance premium of $11,200 covering the top management team. The company is the named beneficiary 2. The carrying amount of the company's property, plant and equipment at January 1, 2020 was $1,250,000, and the UCC at that date was $993,000. Whispering Winds recorded depreciation expense of $173,000 and $189.000 in 2020 and 2021. respectively. OCA for tax purposes wall $185.000 and $164500 for 2020 and 2021, respectively. There were no asset additions or disposals over the two-year period. 3 Whispering Winds deducted $211.000 as a restructuring charge in datermining income for 2019. At December 31, 2019, an accrued liability of $198,500 remained outstanding relative to the restructuring which was expected to be completed in the next fiscal year. This expense is deductible for tax purposes, but only as the actual costs are incurred and paid for The actual restructuring of operations took place in 2020 and 2021 with the Cabllity reduced to $66.000 at the end of 2020 and to so attenda 12 TE 2 In 2020. property held iondevelopment was sold and a profit of $63,000 was recognized in income Recause the sale was made vat delayed payment terms, the proht is taxable only as whispering Windsreceives payments from the purchaser. A 1094downpaymenavas received a 2020. vish the remaining expected in equal amounts over the following three yrais 5 Non-taxable diviends af $3250 2020 andor $350203 were eceived from talable Canadian comparations 16 in addition to the upcome belgren@maiden Ereidab auhispering Winds reported a before tax gairton sain ESRETTES 4. In 2020, property held for development was sold and a profit of $63,000 was recognized in income. Because the salewas made with delayed payment terms, the profit is taxable only as Whispering Winds receives payments from the purchaser. A 10% down payment was received in 2020 with the remaining 90% expected inequal amounts over the following three years. 5. Non-taxable dividends of $3,250 in 2020 and of $3,570 in 2021 were received from wable Canadiar corporations, 6 In addition to the income before income tax identified above, Whispering Winds reported a before-tagain on discontinued operations of $18.200 in 2020. 7. A 30% rate of tax has been in effect since 2018, Whispering Winds Corp. follows IFRS. Determine the balance of any deferred taxasset or liability accounts at Derrier 3120 412020 and 2021 (Enigenetive amounts using either a negative sign preceding the numbereg.-45 on parentheses 29 450 Determine the balance of any deferred tax asset or liability accounts at December 31, 2019, 2020 and 2021 (Enter negative amounts using elther a negative sigri preceding the number . -45 or parentheses egz (4150) 2019 2020 PPSE Restructuring Charges Profit on Property Sale e Textbook and Media List of Accounts Attempts=02used SA
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