Earnings (loss) Depreciation (assets have a cost of $570,000) CCA Non-taxable revenue Tax rate Taxable income 1. What is the amount of the taxable income or loss in each year? (Negative amounts and deductible amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Accounting earnings Permanent difference: Accounting income subject to tax Temporary difference: Taxable income 20X7 20x7 (first year of operations) $235,000 $ 47,500 $ 95,000 $ 37,000 25% 20X8 20X8 $(345,000) $ 47,500 $ 135,000 $ 17,000 25%
Earnings (loss) Depreciation (assets have a cost of $570,000) CCA Non-taxable revenue Tax rate Taxable income 1. What is the amount of the taxable income or loss in each year? (Negative amounts and deductible amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Accounting earnings Permanent difference: Accounting income subject to tax Temporary difference: Taxable income 20X7 20x7 (first year of operations) $235,000 $ 47,500 $ 95,000 $ 37,000 25% 20X8 20X8 $(345,000) $ 47,500 $ 135,000 $ 17,000 25%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dhapa
Transcribed Image Text:Earnings (loss)
Depreciation (assets have a cost of $570,000)
CCA
Non-taxable revenue
Tax rate
Taxable income
1. What is the amount of the taxable income or loss in each year? (Negative amounts and deductible amounts should be
indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
Accounting earnings
Permanent difference:
Accounting income subject to tax
Temporary difference:
Taxable income
20X7
20x7 (first
year of
operations)
$235,000
$ 47,500
$ 95,000
$ 37,000
25%
20X8
20X8
$(345,000)
$ 47,500
$ 135,000
$ 17,000
25%
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