Jenny Corporation recorded warranty accruals as at December 3 1 , 2 0 1 9 , in
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Question:
Jenny Corporation recorded warranty accruals as at December in the amount of $ This reversing difference will cause deductible amounts of $ in $ in and $ in Jenny's accounting income for is $ and the tax rate is for all years. There are no future tax accounts at the beginning of
The Corporation uses IFRS.
Instructions:
a Calculate the deferred income tax balance at December
b Calculate taxable income and current income taxes payable for
c Prepare the journal entries to record income taxes for
d Prepare the income tax expense section of the income statement for beginning with the line "Income before income taxes."
B Use the information for Jenny Corporation in Part A and assume that the company reports accounting income of $ in each of and and the warranty expenditures occurred as expected. No reversing difference exists other than the one identified in Part A
Instructions:
a Calculate the deferred income tax balances at December and
b Calculate taxable income and income taxes payable for and
c Prepare the journal entries to record income taxes for and
d Prepare the income tax expense section of the income statements for and beginning with the line "Income before income taxes." HERE IS PART A
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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