ABC Inc. has asked you to assist in the completion of their 2018 tax provision. They...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ABC Inc. has asked you to assist in the completion of their 2018 tax provision. They have provided you with the following information; NBV at 12/31/2017 $600,000 UCC at 12/31/2017 320,000 Warranty provision 80,000 Tax rate 45% The following transactions occurred during 2018: Income before taxes $1,600,000 Depreciation 160,000 Warranty provision 50,000 Actual warranty expenditures 70,000 Class 8 additions 200,000 Disallowed entertainment 75,000 Dividends from a taxable Canadian corporation 100,000 REQUIRED 1. Prepare a reconciliation of accounting income to income for tax purposes 2. Prepare the journal entries to record the 2018 tax provision ABC Inc. has asked you to assist in the completion of their 2018 tax provision. They have provided you with the following information; NBV at 12/31/2017 $600,000 UCC at 12/31/2017 320,000 Warranty provision 80,000 Tax rate 45% The following transactions occurred during 2018: Income before taxes $1,600,000 Depreciation 160,000 Warranty provision 50,000 Actual warranty expenditures 70,000 Class 8 additions 200,000 Disallowed entertainment 75,000 Dividends from a taxable Canadian corporation 100,000 REQUIRED 1. Prepare a reconciliation of accounting income to income for tax purposes 2. Prepare the journal entries to record the 2018 tax provision
Expert Answer:
Answer rating: 100% (QA)
1 Income before taxes 1600000 Depreciation 160000 Warran... View the full answer
Related Book For
Elementary Statistics Picturing the World
ISBN: 978-0321911216
6th edition
Authors: Ron Larson, Betsy Farber
Posted Date:
Students also viewed these finance questions
-
The bookkeeper of Vital Inc. has asked you to assist him with the preparation of information about the companys trade receivables for presentation in the statement of financial position at December...
-
The bookkeeper at Martin Company has asked you to prepare a bank reconciliation as of May 31. The May 31 bank statement and the May T- account for cash (summarized) are on the next page. Martin...
-
The bookkeeper at Tony Company has asked you to prepare a bank reconciliation as of February 29. The February bank statement and the February T- account for cash showed the following (summarized):...
-
Tell whether the given side lengths form a right triangle. 8, 10, and 14
-
Calculate the change in the entropy of nitrogen using both the ideal-gas table and the entropy departure chart if its state changes from: a) 260 K and 900 kPa to 800 K and 4 MPa b) 350 K and 1200 kPa...
-
You have been presented with the following set of financial statements for National Property Trust, a REIT that is about to make an initial stock offering to the public. This REIT specializes in the...
-
In September 2013, Ugo Mattera entered into a written construction contract with Baja Properties, LLC. Stephen Chad Golden, the sole owner of Baja Properties, signed the contract and addendums on...
-
Ethics and pricing. Instyle Interior Designs has been requested to prepare a bid to decorate four model homes for a new development. Winning the bid would be a big boost for sales representative Jim...
-
What are the drawbacks (disadvantages) of the relational database management system and of the object-oriented database system? What hardware or software support has been implemented for the...
-
The diagram shows an equilateral triangle, PQR, with side length 5cm. M is the midpoint of the line QR. An arc of a circle, centre P, touches QR at M and meets PQ at X and PR at Y. Find in terms of ...
-
Your grandmother has been asked to invest in a product that offers to double her money in 3 years. Indicate the annual rate of return she is being offered. (4 marks) (b) Your parents have $5,000.00...
-
1. If you save 10,000 at the end of every year for 8 years at 8% interest - how much will you have at the end of that period? 2. If you start with 10,000 and save 3,000 every year for 10 years at...
-
List and explain the Criteria Used to Determine a Worker s Status?
-
Alpha Company manufactures leather bags. For the month of April, the total bags to account for are 28,000 and there are 8,000 bags in ending work-in-process (EWIP), 40% complete. There were 24,000...
-
Offer your own views on the strengths and weaknesses of Canadian multiculturalism.
-
A project assessment should provide the project manager with information about the gap between what is and what could be - sometimes including what those two points are. Identify a relevant scope and...
-
: how long will you search for a $50 bill that you lost in your bedroom ,if the value of your time is $ 5 per hour?suppose that you know with certainity that it is lost in your bedroom,that the value...
-
A local politician is concerned that a program for the homeless in her city is discriminating against blacks and other minorities. The following data were taken from a random sample of black and...
-
Construct a 90% confidence interval of the population mean age for the college students in Example 5 with the sample size increased to 30 students. Compare your answer with Example 5. a. Identify n,...
-
Experiment: Rolling 2 six-sided dice Event: Getting a sum of 4 or 5 Identify the sample space of the probability experiment and determine the number of outcomes in the event. Draw a tree diagram when...
-
Sample annual salaries (in thousands of dollars) for employees at a company are listed. (a) Find the sample mean and the sample standard deviation. (b) Each employee in the sample receives a 5%...
-
Claude Deux-Bussy is the owner and operator of Boissons Barbe-Bleue Sarl, a bulk soft-drink producer. A single production process yields two bulk soft drinks, Pellas (the main product) and Mlisande...
-
Milj-Spe AS produces two joint products, cooking oil and soap oil, from a single vegetable oil refining process. In July 2022, the joint costs of this process were NOK 24 000 000. Separable...
-
Flori-Dante Srl grows, processes, packages and sells three joint apple products: (a) sliced apples that are used in frozen pies, (b) apple sauce, and (c) apple juice. The apple peel, processed as...
Study smarter with the SolutionInn App