The following information applies to Cullumber Corporation, which reports under IFRSPrior 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 eightyears for financial reporting purposes, and is a Class 8-20 % asset for tax purposes.Tax-exempt interest income of $60,000 was received in 2023.The tax rate is 30% for all periods.Taxable income is expected in all future years.Cullumber had 100,000 common shares outstanding throughout 2023.1.23.4.5.6.7.(a) Calculate the amount of capital cost allowance and depreciation expense for 2022 and 2023, and the corresponding carryingamount and undepreciated capital cost of the depreciable assets at the end of 2022 and 2023.20222023$Capital CostAllowanceeTextbook and MediaList of AccountsUndepreciatedCapital CostDepreciationExpenseNet BookValue

To claim CCA, a business must keep records of the capital assets they have purchased, including the…

1. 2 3. 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.

1. 2 3. 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.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 47P

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