The following information applies to Wildhorse Corporation, which reports under IFRS.1.Prior to 2022, taxable income and accounting income were identical.2. Accounting income was $1.7 million in 2022 and $1.49 million in 2023.3.On January 1, 2022, equipment costing $1.43 million was purchased. It is being depreciated on a straight-line basis over eightyears for financial reporting purposes, and is a Class 8-20% asset for tax purposes.4.Tax-exempt interest income of $60,000 was received in 2023.5.The tax rate is 30% for all periods.6.Taxable income is expected in all future years.7.Wildhorse had 100,000 common shares outstanding throughout 2023.(a)Your AnswerCorrect Answer (Used)Calculate the amount of capital cost allowance and depreciation expense for 2022 and 2023, and the corresponding carryingamount and undepreciated capital cost of the depreciable assets at the end of 2022 and 2023.(b)Capital CostAllowanceUndepreciatedCapital Cost429,0001,001,000200,200800,800Determine the amount of current and deferred tax expense for 2023.Current income tax expenseDeferred tax expenseDepreciationExpense178,750Net BookValue1,251,250178,7501,072,500

Name: The following information applies to Wildhorse Corporation, which rep
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Description: The following information applies to Wildhorse Corporation, which reports under IFRS.1.Prior to 2022, taxable income and accounting income were identical.2. Accounting income was $1.7 million in 2022 and $1.49 million in 2023.3.On January 1, 2022, e

Capital cost allowance: Capital cost allowance is the deduction provided to the taxpayer for…

Business

Accounting

(a) Your Answer Correct Answer (Used) Calculate the amount of capital cost allowance and depreciation expense for 2022 and 2023, and the corresponding carrying amount and undepreciated capital cost of the depreciable assets at the end of 2022 and 2023. (b) Capital Cost Undepreciated Allowance Capital Cost 429,000 1,001,000 200,200 Depreciation Expense 178,750 Net Book Value 1,251,250 800,800 178,750 1,072,500 Determine the amount of current and deferred tax expense for 2023. Current income tax expense Deferred tax expense

(a) Your Answer Correct Answer (Used) Calculate the amount of capital cost allowance and depreciation expense for 2022 and 2023, and the corresponding carrying amount and undepreciated capital cost of the depreciable assets at the end of 2022 and 2023. (b) Capital Cost Undepreciated Allowance Capital Cost 429,000 1,001,000 200,200 Depreciation Expense 178,750 Net Book Value 1,251,250 800,800 178,750 1,072,500 Determine the amount of current and deferred tax expense for 2023. Current income tax expense Deferred tax expense

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 24CE

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The following information applies to Cullumber Corporation, which reports under IFRS Prior to 2022, taxable income and accounting income were identical. Accounting income was $1.7 million in 2022 and $142 million in 2023. On January 1, 2022, equipment costing $1.38 million was purchased. It is being depreciated on a straight-line basis over eight years for financial reporting purposes, and is a Class 8-20 % asset for tax purposes. Tax-exempt interest income of $60,000 was received in 2023. The tax rate is 30% for all periods. Taxable income is expected in all future years. Cullumber had 100,000 common shares outstanding throughout 2023. 1. 2 3. 4. 5. 6. 7. (a)
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The following information has been obtained for Sheridan Corporation. 1. Prior to 2020, taxable income and pretax financial income were identical. 2. Pretax financial income is $1,634,000 in 2020 and $1,359,000 in 2021. On January 1, 2020, equipment costing $1,260,000 is purchased. It is to be depreciated on a straight-line basis over 5 years for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in Appendix 11A.) 3. 4. Interest of $57,000 was earned on tax-exempt municipal obligations in 2021. 5. Included in 2021 pretax financial income is a gain on discontinued operations of $195,000, which is fully taxable. 6. The tax rate is 20% for all periods. 7. Taxable income is expected in all future years. (a) Compute taxable income and income taxes payable for 2021. Taxable income $ Income taxes payable
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