Wildhorse Corporation has provided the following information for the year ended December 31, 2023. Wildhorse Corporation Income Statement For the Year Ended December 31, 2023 Revenue Service Revenue Dividend Revenue 128,000 9,400 $137,400 Operating Expenses Supplies Expense 1,800 Depreciation Expense 21,700 Advertising Expense 1,000 Meals and Entertainment Expense 5,700 Rent Expense 9,500 Litigation Expense 7,500 Salaries and Wages Expense 39,700 Warranty Expense 4,000 90,900 Operating Income before income tax $46,500 Additional Information: 1. Wildhorse is privately owned and uses ASPE. The dividend revenue represents dividends received from taxable Canadian corporations. 2. 3. 4. 5. 6. 7. Wildhorse's income tax rate is 30%. On January 1, 2023, Wildhorse had a future tax liability of $3,255 related to its property, plant and equipment (PPE). During the year, warranty expense of $4,000 was accrued. One half of this amount was paid during 2023. This is the first year Wildhorse offers warranties on services rendered. Property, plant, and equipment was purchased for $108,500 on January 1, 2022. These assets are being depreciated on a straight-line basis over five years with no residual value and have a 20% CCA rate. This PPE is considered "eligible equipment" for purposes of the Accelerated Investment Incentive (AII) (under the All, instead of using the half-year rule, companies are allowed a first-year deduction using 1.5 times the standard CCA rate). On July 1, Wildhorse was sued by a competitor. Although the lawsuit has not been finalized, management believes that it is likely that a settlement will be reached in the next year for $7,500. This amount has been accrued in the financial statements. On November 30, $4,000 cash was paid in advance for four months of advertising, starting Dec. 1. (a) * Your answer is incorrect. Calculate the amount of any permanent differences for 2023. Permanent differences $ eTextbook and Media List of Accounts Save for Later 2850 Attempts: 2 of 5 used Submit Answer SUPP