Your answer is correct.

Prepare the journal entry to record $2023$ current income taxes. $($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 titles and enter O for the amounts. List debit entry

before credit entry.$)$

Account Titles and Explanation

Debit

Credit

Current Tax Expense

Income Tax Payable

eTextbook and Media

List of Accounts

$($d$)$

Prepare the journal entry to record $2023$ deferred income taxes. $($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 titles and enter O for the amounts. List debit entry

before credit entry.$)$

Account Titles and Explanation

Debit

Credit

Deferred Tax Expense

Deferred Tax Liability

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List of AccountsBonita Corporation follows IFRS. Prior to $2022,$ the accounting income and taxable income for Bonita were the same. On January $1,$

$2022,$ the company purchased equipment at a cost of $$1,104,000.$ For accounting purposes, the equipment was to be depreciated

over six years using the straight$-$line method and no residual value. For income tax purposes, the equipment was subject to a CCA rate

of $30\%$ and was eligible for the Accelerated Investment Incentive $(1\mathrm{.}5$ times the CCA rate applies for $2022).$ Bonita's income before

tax for accounting purposes for $2023$ was $$12,900,000.$ The company was subject to a $20\%$ income tax rate for all applicable years

and anticipated profitable years for the foreseeable future.

$($a$)$

Your answer is correct.

Calculate the amount of the temporary difference for equipment and net change in deferred tax asset$/$liability$.$

Net change in deferred tax asset$/$liability

eTextbook and Media

List of Accounts

$($b$)$

Your answer is correct.

Calculate taxable income and taxes payable for $2023.$

Taxable income