Q1: Your company has more depreciation rate for computers. While computing taxes, will you recognize deferred tax assets or liabilities? a. Asset 6. Liability Q2: Deferred tax assets or liabilities that will be recovered within 12 months are presented as current assets or current liabilities in the balance sheet? True 4. False 03: Where can interest paid be classified in CF Statement ? ..financing activities; b. operating activities: c. Operating or financing activities; or 4. Operating, investing or financing activities. Q4: A change in tax rate from 30% to 20% is enacted on December 31, 20XX. The new tax rate takes effect on April 1, 20XX. An entity has an accounting year-end on December 31, 20xx. How should the deferred tax be measured on temporary differences that are expected to reverse after April 20XX? a. At 20% At 30% c. At an average tax rate based on 20% and 30% Q5: Entity A has unused tax losses of C500 with no expiry date. Management believes that a future taxable profit of C200 is probable and there are taxable temporary differences of C400. The tax rate is 20%. What deferred tax asset is recognized? ..C80 (C400 x 20%) C40 (C200 x 20%) ..C100 (C500 x 20%) Q6: The income tax rate for undistributed profits is 30%. The income tax rate for distributed profits is 40%. For many years, the entity has distributed 50% of its profits. How should the deferred tax of undistributed profits be measured when no dividends have been declared? At 30% Q6: The income tax rate for undistributed profits is 30%. The income tax rate for distributed profits is 40%. For many years, the entity has distributed 50% of its profits. How should the deferred tax of undistributed profits be measured when no dividends have been declared? At 30% b. At 40% c. At an average tax rate based on 30% and 40% Q7: On 31.12.2019 you have furniture at WDV of $10,500. Depreciation rate as per IFRS for 2019 is 12% and 2020 is 15%. The corporate income tax rate in Canada for 2019 is 30% and for 2020 is 35%. Depreciation rate allowed as per CRS for 2019 is 16% and 2020 is 18%. How much deferred tax asset or deferred tax liability you will recognize while preparing financial statements for the year ending on 31.12.2020 ? Give financial journal. Q8. Microsoft computes value for its inherent goodwill at 2m. What should they do How can they bring to books as per IFRS. Give financial journal 09.IBM Canada has bought a machinery on 31.05.2020 from a US supplier. They has to pay to the supplier USD 5m. after 3 month. They entered into a forward exchange agreement with Scotia Bank by paying CAD 2,000 as forward premium Spot rate price on 31.05.2020 is 1 USD = 1.30 CAD 3M Forward rate is 1 USD = 1.35 CAD Spot rate price on 30.08.2020 is 1 USD = 1.38 CAD Give financial journal. Q10 Give financial journal for Q7, Q8 and 29 and pass the entries in QUICKBOOKS using login provided to you