Bonita Corporation follows IFRS. Prior to 2022, the accounting income and taxable income for Bonita were the same. On January 1, 2022, the company purchased equipment at a cost of $1,104,000. For accounting purposes, the equipment was to be depreciated over six years using the straight-line method and no residual value. For income tax purposes, the equipment was subject to a CCA rate of 30% and was eligible for the Accelerated Investment Incentive (1.5 times the CCA rate applies for 2022). Bonita's income before tax for accounting purposes for 2023 was $12,900,000. The company was subject to a 20% income tax rate for all applicable years and anticipated profitable years for the foreseeable future. (a) Your answer is correct. Calculate the amount of the temporary difference for equipment and net change in deferred tax asset/liability. (b) Net change in deferred tax asset/liability eTextbook and Media List of Accounts $ Calculate taxable income and taxes payable for 2023. Taxable income $ Income taxes payable eTextbook and Media List of Accounts Save for Later 368 Attempts: 2 of 3 used Attempts: 0 of 3 used Submit Answer (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above.
Bonita Corporation follows IFRS. Prior to 2022, the accounting income and taxable income for Bonita were the same. On January 1, 2022, the company purchased equipment at a cost of $1,104,000. For accounting purposes, the equipment was to be depreciated over six years using the straight-line method and no residual value. For income tax purposes, the equipment was subject to a CCA rate of 30% and was eligible for the Accelerated Investment Incentive (1.5 times the CCA rate applies for 2022). Bonita's income before tax for accounting purposes for 2023 was $12,900,000. The company was subject to a 20% income tax rate for all applicable years and anticipated profitable years for the foreseeable future. (a) Your answer is correct. Calculate the amount of the temporary difference for equipment and net change in deferred tax asset/liability. (b) Net change in deferred tax asset/liability eTextbook and Media List of Accounts $ Calculate taxable income and taxes payable for 2023. Taxable income $ Income taxes payable eTextbook and Media List of Accounts Save for Later 368 Attempts: 2 of 3 used Attempts: 0 of 3 used Submit Answer (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am. 118.
Transcribed Image Text:Bonita Corporation follows IFRS. Prior to 2022, the accounting income and taxable income for Bonita were the same. On January 1,
2022, the company purchased equipment at a cost of $1,104,000. For accounting purposes, the equipment was to be depreciated over
six years using the straight-line method and no residual value. For income tax purposes, the equipment was subject to a CCA rate of
30% and was eligible for the Accelerated Investment Incentive (1.5 times the CCA rate applies for 2022). Bonita's income before tax
for accounting purposes for 2023 was $12,900,000. The company was subject to a 20% income tax rate for all applicable years and
anticipated profitable years for the foreseeable future.
(a)
Your answer is correct.
Calculate the amount of the temporary difference for equipment and net change in deferred tax asset/liability.
(b)
Net change in deferred tax asset/liability
eTextbook and Media
List of Accounts
$
Calculate taxable income and taxes payable for 2023.
Taxable income
$
Income taxes payable
eTextbook and Media
List of Accounts
Save for Later
368
Attempts: 2 of 3 used
Attempts: 0 of 3 used Submit Answer
(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(d)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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