Refer to E18 13 for Sayaka Tar and Gravel Ltd and
Refer to E18-13 for Sayaka Tar and Gravel Ltd., and assume the same facts as in E18-13 for the fiscal year ending December 31, 2012, except that the enacted tax rate for 2013 and subsequent years was reduced to 40% on September 15, 2012.
(a) Prepare the journal entry to record the effect of the change in the enacted tax rate.
(b) Calculate any future income tax balances at December 31, 2012.
(c) Calculate taxable income and income taxes payable for 2012.
(d) Prepare the journal entries to record income taxes for 2012.
(e) Prepare a comparative income statement for 2011 and 2012, beginning with the line “Income before income taxes” and provide details about the components of income tax expense.
(f) Provide the comparative balance sheet presentation for any resulting future tax balance sheet accounts at December 31, 2011 and 2012. Be specific about the classification.
(g) Repeat the balance sheet presentation in part (e) assuming Sayaka follows IFRS.
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