Cranbrook Corp., reported pre-tax accounting income of $400,000 for the calendar year 2020. To calculate the income tax liability, the following data were considered: CCA in excess of depreciation $40,000 Instalment tax payments made during 2020 $35,000 Enacted income tax rate for 2020 30% What amount should Cranbrook report as its current income tax liability on its December 31, 2020 balance sheet? Select one: a. $35,000. b. $12,000. c. $73,000. d. $51,000.
Cranbrook Corp., reported pre-tax accounting income of $400,000 for the calendar year 2020. To calculate the income tax liability, the following data were considered: CCA in excess of depreciation $40,000 Instalment tax payments made during 2020 $35,000 Enacted income tax rate for 2020 30% What amount should Cranbrook report as its current income tax liability on its December 31, 2020 balance sheet? Select one: a. $35,000. b. $12,000. c. $73,000. d. $51,000.
Chapter12: Tax Credits And Payments
Section: Chapter Questions
Problem 23P
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Question
Cranbrook Corp., reported pre-tax accounting income of $400,000 for the calendar year 2020. To calculate the income tax liability, the following data were considered:
balance sheet ?
CCA in excess of
Instalment tax payments made during 2020 $35,000
Enacted income tax rate for 2020 30%
What amount should Cranbrook report as its current income tax liability on its December 31, 2020
Select one:
a.
$35,000.
b.
$12,000.
c.
$73,000.
d.
$51,000.
e.
None of the above amounts.
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