Nilson Inc. had accounting income of $156,000 in 2011. Included in the calculation of that amount is insurance expense of $5,000, which is not deductible for tax purposes. In addition, the undepreciated capital cost (UCC) for tax pur poses is $14,000 lower than the net carrying amount of the property, plant, and equipment, although the amounts were equal at the beginning of the year. Prepare Nilson's journal entry to record 2011 taxes, assuming IFRS and a tax rate of 25%.
Answer to relevant QuestionsAt December 31, 2011, Naifa Inc. owned equipment that had a book value of $145,000 and a tax basis of $114,000 due to the use of different depreciation methods for accounting and tax purposes. The enacted tax rate is ...Using the information from BE18-3, calculate the effective rate of income tax for Nilson Inc. for 2011. Also make a reconciliation from the statutory rate to the effective rate, using percentages. In BE Melissa Inc. reports ...Zak Corp. purchased depreciable assets costing $600,000 on January 2, 2010. For tax purposes, the company uses CCA in a class that has a 40% rate. For financial reporting purposes, the company uses straight-line depreciation ...Refer to the information for Riley Inc. in E18-22. In E Riley Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: The tax rates listed were all enacted by the beginning ...As the new accountant for Carly’s Pet Express Inc., a line of pet boutiques, you are developing the financial statement disclosures for the 2011 financial statement note on Income Taxes. The company uses PE GAAP, and has ...
Post your question