At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $29,100 on its balance sheet. At December 31, 2023, Blossom has five temporary differences. An analysis reveals the Following: Future (Taxable) Deductible Amounts emporary Difference 2024 2025 2026 oks; deductible when funded for tax purposes $29,100 $19,100 $10,000 earned for accounting purposes and when received for tax purposes 76,000 accounting purposes and recognized for tax purposes when paid 24,000 alment sales when sold for book purposes, and as collected for tax purposes (36,300) (36,300) (36,300) ting purposes, and CCA for tax purposes (90,300) (50,000) (40,000) $2,500 ($67,200) ($66,300)
At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $29,100 on its balance sheet. At December 31, 2023, Blossom has five temporary differences. An analysis reveals the Following: Future (Taxable) Deductible Amounts emporary Difference 2024 2025 2026 oks; deductible when funded for tax purposes $29,100 $19,100 $10,000 earned for accounting purposes and when received for tax purposes 76,000 accounting purposes and recognized for tax purposes when paid 24,000 alment sales when sold for book purposes, and as collected for tax purposes (36,300) (36,300) (36,300) ting purposes, and CCA for tax purposes (90,300) (50,000) (40,000) $2,500 ($67,200) ($66,300)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a related deferred tax
asset of $29,100 on its balance sheet. At December 31, 2023, Blossom has five temporary differences. An analysis reveals the
following:
Future (Taxable) Deductible Amounts
emporary Difference
2024
2025
2026
oks; deductible when funded for tax purposes
$29,100
$19,100
$10,000
earned for accounting purposes and when received for tax purposes
76,000
accounting purposes and recognized for tax purposes when paid
alment sales when sold for book purposes, and as collected for tax purposes
24,000
(36,300)
(36,300)
(36,300)
ting purposes, and CCA for tax purposes
(90,300)
(50,000)
(40,000)
$2,500
($67,200)
($66,300)
The enacted tax rate has been 30% for many years. In November 2023, the rate was changed to 28% for all periods after January 1,
2025. Assume that the company has income tax due of $180,000 on the 2023 tax return and that Blossom follows IFRS.
(a)
Indicate how deferred taxes should be presented on Blossom's December 31, 2023 SFP.
BLOSSOM CORPORATION
(Partial) Balance Sheet
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a15d422-168c-4cbd-b522-171ee570563a%2F49dfe390-bc53-47e9-8c7b-728ec84cc506%2Fewtpnk_processed.png&w=3840&q=75)
Transcribed Image Text:At December 31, 2022, Blossom Corporation had a temporary difference (related to pensions) and reported a related deferred tax
asset of $29,100 on its balance sheet. At December 31, 2023, Blossom has five temporary differences. An analysis reveals the
following:
Future (Taxable) Deductible Amounts
emporary Difference
2024
2025
2026
oks; deductible when funded for tax purposes
$29,100
$19,100
$10,000
earned for accounting purposes and when received for tax purposes
76,000
accounting purposes and recognized for tax purposes when paid
alment sales when sold for book purposes, and as collected for tax purposes
24,000
(36,300)
(36,300)
(36,300)
ting purposes, and CCA for tax purposes
(90,300)
(50,000)
(40,000)
$2,500
($67,200)
($66,300)
The enacted tax rate has been 30% for many years. In November 2023, the rate was changed to 28% for all periods after January 1,
2025. Assume that the company has income tax due of $180,000 on the 2023 tax return and that Blossom follows IFRS.
(a)
Indicate how deferred taxes should be presented on Blossom's December 31, 2023 SFP.
BLOSSOM CORPORATION
(Partial) Balance Sheet
$
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