Current Attempt in Progress

For the year ended December $31,2023,$ Blue Ltd$.$ reported income before income taxes of $$206,700.$ Prior to $2023$ taxable income

and accounting income was the same each year.

In $2023,$ Blue Ltd$.$ paid $$120,600$ for advertising; of this amount, $$40,200$ was expensed in $2023.$ The remaining $$80,400$ was treated

as a prepaid expense for accounting purposes and would be expensed equally over the $2024-2025$ period. The full $$120,600$ was

deductible for tax purposes in $2023.$

The company paid $$32,600$ in $2023$ for membership in a local golf club $($which was not deductible for tax purposes$).$

In $2023$ Blue Ltd$.$ began offering a $1-$year warranty on all merchandise sold. Warranty expenses for $2023$ were $$25,200,$ of which

$$20,300$ was actual repairs for $2023$ and the remaining $$4,900$ was estimated repairs to be completed in $2024.$

Meal and entertainment expenses totalled $$40,200$ in $2023,$ only half of which were deductible for income tax purposes.

Depreciation expense for $2023$ was $$100,300.$ Capital Cost Allowance $($CCA$)$ claimed for the year was $$131,500.$ Depreciation and

CCA relate to an asset that was purchased on January $1,2023$ for $$501,500.$

Blue was subject to a $25\%$ income tax rate for $2023.$ Blue follows IFRS.

Record current income taxes for $2023.($Credit account titles are automatically indented when the amount is entered. Do

not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List

debit entry before credit entry.$)$

Account Titles and Explanation

Debit

Deferred Tax Asset

eTextbook and Media

List of Accounts