Tamarisk Enterprises Ltd., a private company following ASPE earned accounting income before taxes of $1,717,000 for the year endedDecember 31, 2023.During 2023, Tamarisk paid $250,000 for meals and entertainment expenses.In 2020, Tamarisk's tax accountant made a mistake when preparing the company's income tax return. In 2023, Tamarisk paid $18,000in penalties related to this error. These penalties were not deductible for tax purposes.Tamarisk owned a warehouse building for which it had no current use, so the company chose to use the building as a rental property.At the beginning of 2023, Tamarisk rented the building to SPK Inc. for two years at $260,000 per year. SPK paid the entire two yearsrent in advance.Tamarisk used the straight-line depreciation method for accounting purposes and recorded depreciation expense of $404,000. For taxpurposes, Tamarisk claimed the maximum capital cost allowance of $629,000.Tamarisk began to sell its products with a two-year warranty against manufacturing defects in 2023 to match a warranty introducedby its main competitor. In 2023, Tamarisk accrued $580,000 of warranty expenses: actual expenditures for 2023 were $279,000 withthe remaining $301,000 anticipated in 2024.d that tax rates would be In 2023, Tamarisk was subject to a 35% income tax rate. During the year, the federal government announced that tax rates would bedecreased to 33% for all future years beginning January 1, 2024(a)Your answer is incorrect.Calculate the amount of any permanent differences for 2023.Permanent differences$18000

Permanent differences are the differences between taxable income and accounting income that will not…

Answered: Calculate the amount of any permanent…

Business

Accounting

Calculate the amount of any permanent differences for 2023.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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