A reconciliation of Quebec Corp 's pre tax accounting income with its taxable income for 2020, its first year of operations, is as follows Pre tax accounting income $ 3,000,000 Excess CCA (90,000) Taxable income $ 2,910,000 The excess CCA will result in equal net taxable amounts in each of the next...

1Calculation of Deffered tax Liability In 2020 Company not pay tax on expense of 90000 ...

A reconciliation of Quebec Corp.'s pre-tax accounting income with its taxable income for 2020, its first year

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Question:

A reconciliation of Quebec Corp.'s pre-tax accounting income with its taxable income for 2020, its first year of operations, is as follows:

Pre-tax accounting income $ 3,000,000

Excess CCA (90,000)

Taxable income $ 2,910,000

The excess CCA will result in equal net taxable amounts in each of the next three years. Enacted tax rates are 40% in 2020, 35% in 2021, and 30% in both 2022 and 2023. The total deferred tax liability to be reported on Quebec's SFP at December 31, 2020 is

	a.	$ 36,000.
	b.	$ 30,000.
	c.	$ 28,500.
	d.	$ 31,500.

In 2020, Savoury Ltd. accrued, for book purposes, estimated losses on disposal of unused plant facilities of $ 750,000. The facilities were sold in March 2021 and a $ 750,000 loss was recognized for tax purposes. Also, in 2020, Savoury paid $ 50,000 in premiums for a two-year life insurance policy in which the company was the beneficiary. Assuming that the enacted tax rate is 25% in both 2020 and 2021, and that Savoury paid $ 390,000 in income taxes in 2020, the amount reported as the deferred tax asset or liability on Savoury's SFP at December 31, 2020, should be a

$ 187,500 asset.

$ 187,500 liability.

$ 175,000 asset.

Cannot be determined from the information given.

At the end of 2020, its first year of operations, Gaucho Corp. prepared the following reconciliation between pre-tax accounting income and taxable income:

Pre-tax accounting income $ 800,000

Estimated lawsuit expense 400,000

Excess CCA for tax purposes (900,000)

Taxable income $ 300,000

The estimated lawsuit expense of $ 400,000 will be deductible in 2021 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $ 300,000 in each of the next three years. The income tax rate is 25% for all years. Gaucho adheres to IFRS requirements. The deferred tax asset to be recorded is