Using the information from BE18-5, and assuming that the $40,000 difference is the only difference between Mazur's
Question:
Using the information from BE18-5, and assuming that the $40,000 difference is the only difference between Mazur's accounting income and taxable income, prepare the journal entry(ies) to record the current tax expense, deferred tax expense, income tax payable, and the deferred tax liability.
Data From BE18-5:
Mazur Corp. follows IFRS and began operations in 2017 and reported accounting income of $275,000 for the year. Mazur's CCA exceeded its book depreciation by $40,000. Mazur's tax rate for 2017 and years thereafter is 30%. In its December 31, 2017 statement of financial position, what amount of deferred tax liability should be reported?
Step by Step Answer:
Intermediate Accounting
ISBN: 978-1119048541
11th Canadian edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy