Refer to the information about Clausius Ltd. in BE13.11. Assume instead that the tax return indicated 2023
Question:
Refer to the information about Clausius Ltd. in BE13.11. Assume instead that the tax return indicated 2023 income tax of $10,200.
(a) Prepare the adjusting year-end entry to recognize the 2023 income tax.
(b) Identify any year-end SFP amount that is related to income tax and indicate how it should be classified.
BE13.11
Clausius Ltd. made four quarterly payments of $3,200 each to the Receiver General for Canada during 2023 as instalment payments on its estimated 2023 corporate tax liability. At year end, Clausius’s controller completed the company’s 2023 tax return, which showed income tax owing of $20,000 on its 2023 income.
Step by Step Answer:
Intermediate Accounting Volume 2
ISBN: 9781119740445
13th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy