At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $30,900 on its balance sheet. At December 31, 2023, Blossom has five temporary differences. An analysis reveals the following: 1. 2. 3. Temporary Difference Pension liability: expensed as incurred on the books; deductible when funded for tax purposes Royalties collected in advance: recognized when earned for accounting purposes and when received for tax purposes Accrued liabilities: various expenses accrued for accounting purposes and recognized for tax purposes when paid 4. 5. Deferred gross profit: profits recognized on instalment sales when sold for book purposes, and as collected for tax purposes Equipment: straight-line depreciation for accounting purposes, and CCA for tax purposes The enacted tax rate has been 30% for many years. In November 2023, the rate was changed to 28% for all periods after January 1. 2025. Assume that the company has income tax due of $180,000 on the 2023 tax return and that Blossom follows IFRS. (a) Indicate how deferred taxes should be presented on Blossom's December 31, 2023 SFP. BLOSSOM CORPORATION (Partial) Balance Sheet At Dec 21 2022 Corporation had a temporary afference viated to cension and reported a related deferred tax st of $30.900 in its balance sheet At December 21 2023, som ove temporary ducas Alany Future (Taxable) Deductible Amounts Temporary Differenc 2004 2025 2026 1 Pin boned secured on the boo deductible when fund 130900 $20.900 $10,000 2 van collected in advanced credor accounting purposes and when neceived for 2000 2 24000 4. (3000 CA200 tament ght ne c umon for accounting purgines and CCA for tax purposes 90000 $4900 30.0001 45300 140,000 1000) The bears in Noventer 2023 e rate was changed to 2% for alter after buy 1, 2005. A that the company has income tax due of $181 000 on the 2023 tai reture and th tal news should be rember 25, 20 BLOSSOM CORPORATION At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $30,900 on its balance sheet. At December 31, 2023, Blossom has five temporary differences. An analysis reveals the following: 1. 2. 3. Temporary Difference Pension liability: expensed as incurred on the books; deductible when funded for tax purposes Royalties collected in advance: recognized when earned for accounting purposes and when received for tax purposes Accrued liabilities: various expenses accrued for accounting purposes and recognized for tax purposes when paid 4. 5. Deferred gross profit: profits recognized on instalment sales when sold for book purposes, and as collected for tax purposes Equipment: straight-line depreciation for accounting purposes, and CCA for tax purposes The enacted tax rate has been 30% for many years. In November 2023, the rate was changed to 28% for all periods after January 1. 2025. Assume that the company has income tax due of $180,000 on the 2023 tax return and that Blossom follows IFRS. (a) Indicate how deferred taxes should be presented on Blossom's December 31, 2023 SFP. BLOSSOM CORPORATION (Partial) Balance Sheet At Dec 21 2022 Corporation had a temporary afference viated to cension and reported a related deferred tax st of $30.900 in its balance sheet At December 21 2023, som ove temporary ducas Alany Future (Taxable) Deductible Amounts Temporary Differenc 2004 2025 2026 1 Pin boned secured on the boo deductible when fund 130900 $20.900 $10,000 2 van collected in advanced credor accounting purposes and when neceived for 2000 2 24000 4. (3000 CA200 tament ght ne c umon for accounting purgines and CCA for tax purposes 90000 $4900 30.0001 45300 140,000 1000) The bears in Noventer 2023 e rate was changed to 2% for alter after buy 1, 2005. A that the company has income tax due of $181 000 on the 2023 tai reture and th tal news should be rember 25, 20 BLOSSOM CORPORATION
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
Posted Date:
Students also viewed these accounting questions
-
At December 31, 2010, Chloe Corporation had a temporary difference (related to pensions) and reported a related future tax asset of $40,000 on its balance sheet. At December 31, 2011, Chloe has five...
-
At December 31, 2013, Chloe Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $30,000 on its balance sheet. At December 31, 2014, Chloe has...
-
Plainbank has $10 million in cash and equivalents, $30 million in loans, and $15 in core deposits. a. Calculate the financing gap. b. What is the financing requirement? c. How can the financing gap...
-
Is it believable that the numbers 65, 30, and 55 are a random sample of size 3 from a normal distribution with = 50 and = 10? Answer the question by using a chi square distribution. [Let Zi = (Yi ...
-
On January 1, 2019, Durdil A. borrowed and received Turkish_lira500,000 from a major customer evidenced by a zero-interest-bearing note due in 3 years. As consideration for the zero-interest-bearing...
-
Pinned end a. Bending moment \(=0\); shear force equals the b. Deflection \(=0\); slope \(=0\) c. Deflection \(=0\); bending moment \(=0\) d. Bending moment \(=0\); shear force \(=0\)
-
Nagy Company negotiates a lump- sum purchase of several assets from a contractor who is relocating. The purchase is completed on January 1, 2013, at a total cash price of $1,800,000 for a building,...
-
On August 3, Cinco Construction purchased special-purpose equipment at a cost of $4,700,000. The useful life of the equipment was estimated to be eight years, with an estimated residual value of...
-
You will need to determine which approaches you will use in each given database security scenario, and then compare the different approaches against one another. Layers / Approaches (See Database...
-
Which statement about the following declarations is correct? A. None of the declarations compile. B. Only the declaration of Friend contains a compiler error. C. Only the declaration of MyFriends...
-
Which properties of the Clean annotation must be true for the following to compile? (Choose three.) A. The annotation must contain exactly one element. B. The annotation must contain an element named...
-
Which is found in the java.sql package that come with the standard JDK? A. Only DerbyDriver B. Only MySqlDriver C. Only OracleDriver D. DerbyDriver, MySqlDriver, OracleDriver E. Only DerbyDriver and...
-
How many lines of the following declarations contain a compiler error? A. None B. One C. Two D. Three E. Four F. Five. import java.lang.annotation.*; enum Colors { RED, BLUE, GREEN } @Documented...
-
What is the name of a concrete class that implements Statement and is included in the core JDK? A. CallableStatement B. PreparedStatement C. StatementImpl D. Both A and B E. None of the above
-
Fulfill the requirements: 1. Describe the Fraud schemes used in organizations. 2. Explain the auditors role and the expectation of that role to find fraud 3. Examine the role of professional...
-
White Bolder Investments (WBI) You are an intern working for WBI, a large investment advisory services in Sydney. Among other regular customers, WBI has been providing advisory services for Jumbo...
-
A reversible heat engine operates between two reservoirs at temperatures, \(700^{\circ} \mathrm{C}\) and \(50^{\circ} \mathrm{C}\). The engine drives a reversible refrigerator which operates between...
-
Two Carnot engines work in series between the source and sink temperatures of \(500 \mathrm{~K}\) and \(300 \mathrm{~K}\). If both engines develop equal power determine the intermediate temperature.
-
A reversible heat engine working between two thermal reservoirs at \(875 \mathrm{~K}\) and \(315 \mathrm{~K}\) drives a reversible refrigerator which operates between the same \(315 \mathrm{~K}\)...
Study smarter with the SolutionInn App