Jordan Corporation reports under IFRS. The following information applies to

Jordan Corporation reports under IFRS. The following information applies to Jordan Corporation.
Prior to 2013, taxable income and accounting income were identical.
2. Accounting income was $1.7 million in 2013 and $1.4 million in 2014.
3. On January 1, 2013, equipment costing $1 million was purchased. It is being depreciated on a straight-line basis over eight years for financial reporting purposes, and is a Class 8-20% asset for tax purposes.
4. Tax-exempt interest income of $60,000 was received in 2014.
5. The tax rate is 35% for all periods.
6. Taxable income is expected in all future years.
7. Jordan Corporation had 100,000 common shares outstanding throughout 2014.
(a) Calculate the amount of capital cost allowance and depreciation expense for 2013 and 2014, and the corresponding carrying amount and undepreciated capital cost of the depreciable assets at the end of 2013 and 2014.
(b) Determine the amount of current and deferred tax expense for 2014.
(c) Prepare the journal entry (ies) to record 2014 income taxes.
(d) Prepare the bottom portion of Jordan's 2014 income statement, beginning with the line "Income before income tax."
(e) Indicate how deferred taxes should be presented on the December 31, 2014 statement of financial position.
(f) How would your responses to parts (a) to (e) change if Jordan Corporation followed the ASPE future/deferred income taxes method?
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...


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