The differences between the carrying amounts and tax bases were expected to reverse as follows: 2023 2024 After 2024 Depreciable assets $17,500 $13,000 $3,300 Warranty liability 18,500 0 0 Accrued pension liability 11,000 12,000 15,600 Tax rates enacted at December 31, 2022 were 33% for 2022, 32% for 2023, 31% for 2024, and 30% for 2025 and later years. During 2023, Wildhorse made four quarterly tax instalment payments of $7,500 each and reported income before income tax on its income statement of $111,100. Included in this amount were dividends from taxable Canadian corporations of $3,900 (non-taxable income) and $19,000 of expenses related to the executive team's golf dues (non-tax-deductible expenses). There were no changes to the enacted tax rates during the year. As expected, book depreciation in 2023 exceeded the capital cost allowance claimed for tax purposes by $17,500, and there were no additions or disposals of property, plant, and equipment during the year. A review of the 2023 activity in the Warranty Liability account in the ledger indicated the following: Balance, Dec. 31, 2022 $18,500 Payments on 2022 product warranties (18,900) Payments on 2023 product warranties (3,600) 2023 warranty accrual 28,300 Balance, Dec. 31, 2023 $24,300 All warranties are valid for one year only. The Pension Liability account reported the following activity: Balance, Dec. 31, 2022 $38,600 Payment to pension trustee (69,000) 2023 pension expense 58,000 Balance, Dec. 31, 2023 $27,600 Pension expenses are deductible for tax purposes, but only as they are paid to the trustee, not as they are accrued for financial reporting purposes. Wildhorse reports under IFRS. c. Prepare all income tax entries for Wildhorse 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.) Account Titles and Explanation Debit Credit (To record current tax expense) (To record deferred tax expense) d. Identify the balances of all income tax accounts at December 31, 2023, and show how they will be reported on the comparative statements of financial position at December 31, 2023 and 2022, and on the income statement for the year ended December 31, 2023. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Promy Corps (Partial) Income Statement Investigate (Partial) Statements of Financial Position +A 2020 2019 not given

The differences between the carrying amounts and tax bases were expected to reverse as follows: 2023 2024 After 2024 Depreciable assets $17,500 $13,000 $3,300 Warranty liability 18,500 0 0 Accrued pension liability 11,000 12,000 15,600 Tax rates enacted at December 31, 2022 were 33% for 2022, 32% for 2023, 31% for 2024, and 30% for 2025 and later years. During 2023, Wildhorse made four quarterly tax instalment payments of $7,500 each and reported income before income tax on its income statement of $111,100. Included in this amount were dividends from taxable Canadian corporations of $3,900 (non-taxable income) and $19,000 of expenses related to the executive team's golf dues (non-tax-deductible expenses). There were no changes to the enacted tax rates during the year. As expected, book depreciation in 2023 exceeded the capital cost allowance claimed for tax purposes by $17,500, and there were no additions or disposals of property, plant, and equipment during the year. A review of the 2023 activity in the Warranty Liability account in the ledger indicated the following: Balance, Dec. 31, 2022 $18,500 Payments on 2022 product warranties (18,900) Payments on 2023 product warranties (3,600) 2023 warranty accrual 28,300 Balance, Dec. 31, 2023 $24,300 All warranties are valid for one year only. The Pension Liability account reported the following activity: Balance, Dec. 31, 2022 $38,600 Payment to pension trustee (69,000) 2023 pension expense 58,000 Balance, Dec. 31, 2023 $27,600 Pension expenses are deductible for tax purposes, but only as they are paid to the trustee, not as they are accrued for financial reporting purposes. Wildhorse reports under IFRS. c. Prepare all income tax entries for Wildhorse 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.) Account Titles and Explanation Debit Credit (To record current tax expense) (To record deferred tax expense) d. Identify the balances of all income tax accounts at December 31, 2023, and show how they will be reported on the comparative statements of financial position at December 31, 2023 and 2022, and on the income statement for the year ended December 31, 2023. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Promy Corps (Partial) Income Statement Investigate (Partial) Statements of Financial Position +A 2020 2019 not given

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 29P

See similar textbooks