See the below tables that provide information from the financial statements of the Quebec Manufacturing Corporation...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
See the below tables that provide information from the financial statements of the Quebec Manufacturing Corporation for a four-year period, reflecting the Pre-tax Accounting Income and Historical cost, Accumulated Depreciation and Net Book Value of Capital Assets. In addition, the last table provides the Capital Cost Allowance (CCA) for each year. There were no deferred income tax balances at 1 January 20X1. Quebec Manufacturing Corporation has a tax rate of 40% each year. Note: the only difference in Pre-tax Accounting Income and Taxable Income relates to the temporary timing difference for Capital Assets. Quebec Manufacturing Corporation reports in Canada under IRFS. Required: 1. Calculate the Income tax payable for 20X1, 20X2, 20X3 and 20X4. 2. Calculate the required change each year in the Deferred Tax amount for 20X1, 20X2, 20X3 and 20X4. 3. Prepare the journal entry to record income tax expense in 20X1, 20X2, 20X3 and 20X4. Select from these accounts: Deferred income tax; Income tax expense; Income tax payable Summary Income Statement Revenues Less: Expenses other than Depreciation Depreciation expense Total Expenses Pre-tax Accounting Income Capital Assets* Historical Cost Less: Accumulated depreciation Net Book Value *4-year useful life, no residual value Capital Cost Allowance Capital Assets Final ACCT 735-TEST QUESTIONS BOOKLETb 20X1 114,500 80,900 10,225 91,125 23,375 20X1 40,900 10,225 $30,675 20X1 $16,900 20X2 128,500 92,900 10,225 103,125 25,375 20X2 40,900 20,450 $20,450 20X2 $12,900 20X3 148,500 95,900 10,225 106,125 42,375 20X3 40,900 30,675 $10,225 20X3 $7,100 20X4 168,500 128,900 10,225 139,125 29,375 20X4 40,900 40,900 20X4 $0 $4,000 Page 8 See the below tables that provide information from the financial statements of the Quebec Manufacturing Corporation for a four-year period, reflecting the Pre-tax Accounting Income and Historical cost, Accumulated Depreciation and Net Book Value of Capital Assets. In addition, the last table provides the Capital Cost Allowance (CCA) for each year. There were no deferred income tax balances at 1 January 20X1. Quebec Manufacturing Corporation has a tax rate of 40% each year. Note: the only difference in Pre-tax Accounting Income and Taxable Income relates to the temporary timing difference for Capital Assets. Quebec Manufacturing Corporation reports in Canada under IRFS. Required: 1. Calculate the Income tax payable for 20X1, 20X2, 20X3 and 20X4. 2. Calculate the required change each year in the Deferred Tax amount for 20X1, 20X2, 20X3 and 20X4. 3. Prepare the journal entry to record income tax expense in 20X1, 20X2, 20X3 and 20X4. Select from these accounts: Deferred income tax; Income tax expense; Income tax payable Summary Income Statement Revenues Less: Expenses other than Depreciation Depreciation expense Total Expenses Pre-tax Accounting Income Capital Assets* Historical Cost Less: Accumulated depreciation Net Book Value *4-year useful life, no residual value Capital Cost Allowance Capital Assets Final ACCT 735-TEST QUESTIONS BOOKLETb 20X1 114,500 80,900 10,225 91,125 23,375 20X1 40,900 10,225 $30,675 20X1 $16,900 20X2 128,500 92,900 10,225 103,125 25,375 20X2 40,900 20,450 $20,450 20X2 $12,900 20X3 148,500 95,900 10,225 106,125 42,375 20X3 40,900 30,675 $10,225 20X3 $7,100 20X4 168,500 128,900 10,225 139,125 29,375 20X4 40,900 40,900 20X4 $0 $4,000 Page 8
Expert Answer:
Related Book For
Posted Date:
Students also viewed these law questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Complete the requirements for each of the following independent cases: Case A. Dr Pepper Snapple Group, Inc., is a leading integrated brand owner, bottler, and distributor of nonalcoholic beverages...
-
Which of the following is not an element of the fraud triangle? (a) Rationalization. (b) Financial pressure. (c) Segregation of duties. (d) Opportunity.
-
Williams Corporation accountants have assembled the following data for the year ended June 30, 2016: Net...
-
Arrange the following alkenes in order of decreasing stability: 1-pentene; (E)-2-pentene; (Z)-2-pentene; 2-methyl-2-butene.
-
In planning the audit of accounts receivable, you decide to select accounts for confirmation using a variables estimation sampling plan. A major reason for your decision is the advantage of being...
-
Franklin Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking...
-
Provide the missing data in the following table for a distributor of martial arts products: (Round "Turnover" and "ROI" answers to 1 decimal place.) Alpha Division Bravo Division Charlie Division...
-
Imagine you are a QA engineer working on a critical software project. The project follows a standard Software Development Life Cycle (SDLC) comprising phases such as requirements gathering, design,...
-
These are diagrams that represent the magnitude and direction of the forces acting on an object. Using the be as free body different types of forces that you have learned about (and that are listed...
-
1. For the bolted connection shown below, determine P. that can be safely carried according to LRFD provisions. Grade 8.8 M20 bolts with standard holes are used and threads are included in the shear...
-
A light source consists of four tiny bulbs (point sources) arranged in the pattern shown below. This is a "front" view looking toward the light sources from the screen. This source is placed 50 cm...
-
1. Construct a simple pendulum starting with 20 cm length. 2. Hang the pendulum as pictures in one of the two methods shown above. 3. Using the protractor, displace the pendulum 10 degrees from the...
-
Two charged particles are positioned in the xy plane. Q1= 5.46 nC charge is located at (0.00, 5.63) m, Q2 = -6.8 nC charge is located (0.00, 0.00) m. a) What is the vector electric field at Point P...
-
12. Earliest finish time (EF) is calculated __________ . a . by dividing the activitys latest finish time by the activitys earliest start time b . by multiplying the activitys duration estimate with...
-
Write a paper detailing a geographic information system (GIS) of your own design that would utilize data in an original manner.
-
On January 15, 2009, Tallyho Corp. incorporated in Georgia and was authorized to issue 3,000,000 shares of common stock. In an initial public offering, Tallyho sold 1,350,000 shares of common stock...
-
When Parisian Globe issued $4,000,000 of ten-year, 11 percent bonds on September 1, 2009, the market interest rate was 9 percent. The bonds pay interest semiannually on March 1 and September 1....
-
Briey describe the nature and purpose of adjusting entries and closing entries.
-
Determine the state of steam at : (a) \(p=14\) bar and \(t=210^{\circ} \mathrm{C}\), and (b) \(p=8\) bar and \(2700 \mathrm{~kJ} / \mathrm{kg}\) of heat supplied to water from
-
The following readings were taken with a separating and throttling calorimeter: \[ \begin{aligned} \text { Initial pressure } & =12 \mathrm{bar} \\ \text { Final pressure } & =1.2 \mathrm{bar} \\...
-
Determine the condition of steam in the following cases : (a) At a pressure of 10 bar and \(200^{\circ} \mathrm{C}\). (b) At a pressure of 8 bar and specific volume of \(0.22 \mathrm{~m}^{3} /...
Study smarter with the SolutionInn App