Rogers Sugar Inc. is headquartered in Vancouver, but has operations in Alberta, Ontario, Quebec, and New Brunswick. The company is the largest producer of refined sugar in Canada and also packages and markets sugar products. Exhibits 10-14A to C contain extracts from the company’s 2013 annual report.
a. For the year ended September 28, 2013, determine Rogers’ total income tax expense. Also, determine how much of this was for current tax and how much was related to deferred taxes.
b. Rogers reported income taxes recoverable and income taxes payable on its statement of financial position. Quantify those amounts and explain how it would be possible to have a recoverable amount and a payable amount at the same time. Hint: These are the company’s consolidated financial statements.
c. Rogers also reported deferred tax assets and deferred tax liabilities on its statement of financial position. Of the $26,799 in deferred tax liabilities, $23,463 related to property, plant, and equipment. Given that significant deferred tax liabilities exist, what do we know about how the company’s depreciation expense related to its property, plant, and equipment compares with the capital cost allowance being claimed on these assets for tax purposes?

  • CreatedJune 12, 2015
  • Files Included
Post your question