Canadian Colour Company (CCC) purchased GST-taxable supplies from Polaroid Canada worth $32,000.00 during 2019. CCC used these supplies to provide prints for its customers. CCC's total taxable sales for the year were $50,000.00. How much tax must CcC remit to the Canada Revenue Agency (CRA)?

Canadian Colour Company (CCC) purchased GST-taxable supplies from Polaroid Canada worth $32,000.00 during 2019. CCC used these supplies to provide prints for its customers. CCC's total taxable sales for the year were $50,000.00. How much tax must CcC remit to the Canada Revenue Agency (CRA)?

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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Prance, Inc., earns pretax book net income of $800,000 in 2019. Prance acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reported no other temporary or permanent book-tax differences. The pertinent U.S. tax rate is 21%, and Prance earns an after- tax rate of return on capital of 8%. Compute Prance’s current income tax expense for the year.
Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the warranty work is completed. At December 31, 2021, Lance has a warranty liability of $2 million and taxable income of $80 million. At December 31, 2020, Lance reported a deferred tax asset of $461,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate is 25% each year. Required:Prepare the appropriate journal entry to record Lance’s income tax provision for 2021.
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At the end of 2021, a company has a deferred tax asset with a balance of $480,000.The company has a valuation allowance account related to the deferred tax asset. The valuation account has a balance of $205,000 at the beginning of 2021. If it is more likely than not that all of the deferred tax asset will be realized, then (enter the number that represents the correct answer): income tax expense will be debited by $205,000. income tax expense will be credited by $205,000. deferred tax asset will be debited by $275,000 the valuation account will be credited by $205,000.
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