Use Excel to answer the question $($s$)$

Question $1(20$ marks$)$

Company B $($CB$)$ had the following issues related to the year ended

December $31,2023.$

Equipment # $1$ was acquired at a cost of $$900,000$ on January $1,$

It was being depreciated on a straight line basis over $10$ years

with no residual value. At the beginning of $2023$ management

determined that the total useful life of Equipment # $1$ was actually $8$

years with a residual value of $$50,000.$

Equipment # $2$ was purchased for $$400,000$ in $2022$ but was fully

expensed for both tax and accounting purposes in that year. However

the equipment was also correctly added to the CCA pool for that year.

This error was discovered in $2023.$ The tax returns will be refiled for

The equipment was to be depreciated over $10$ years on a straight

line basis with a residual value of $$20,000.$

CB made an error in calculating the warranty accrual in $2022.$ The

expense and accrual were recorded at $$80,000$ when they should have

been at $$180,000.$ The error was discovered in $2023.$

CB changed the accounting policy on accounting for their

subsidiaries. Previously the cost method had been used but for $2023$

they will now use the consolidation method.

Required:

For Number $1-3$ prepare the journal entries for $2023.$ IFRS is the

constraint and the tax rate is $35\%$ for all years.