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ed The Alberta Mining and Export Corporation (AMEC) has operations at several locations throughout the province of Alberta in Western Canada. AMEC reports under IFRS as a publicly traded company. AMEC reported the following financial results (all pre-tax amounts) for the years 20X6 through 20X9: Alberta Mining and Export Corporation: Statement of Profit and Loss (summarized) Revenues Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income 20X6 $118,000 (81,600) (10,400) 20X7 $132,000 (93,600) (10,400) 20X8 $152,000 (96,600) (10,400) 20X9 $172,000 (129,600) $ 26,000 $ 28,000 $ 45,000 (10,400) $ 32,000 Alberta Mining and Export Corporation: Statement of Financial Position (partial) Machine (four-year life, no residual value), at cost Less: Accumulated depreciation AMEC has a tax rate of 40% for each of the relevant years. AMEC claimed the following amounts as CCA on its income tax filings: • 20X6: $17,600 • 20X7: $13,600 20X6 20X7 20X8 $ 41,600 $ 41,600 $ 41,600 $ 41,600 (10,400) (20,400) (30,400) (41,600) $ 31,200 $ 21,200 $ 11,200 $ 20X9 0 • 20X8: $6,400 • 20X9: $4,000. Note: AMEC had no deferred income tax balances at 1 January 20X6. Required: For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also net income. (Negative amounts and deductible amounts should be indicated by a minus sign.) Deferred income tax balance Net income 20X6 $ (2,880) $ $ 15,600 $ 20X7 20X8 20X9 (4,160) $ 16,800 $ (2,560) $ 30,200 $ 0 24,160 x

ed The Alberta Mining and Export Corporation (AMEC) has operations at several locations throughout the province of Alberta in Western Canada. AMEC reports under IFRS as a publicly traded company. AMEC reported the following financial results (all pre-tax amounts) for the years 20X6 through 20X9: Alberta Mining and Export Corporation: Statement of Profit and Loss (summarized) Revenues Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income 20X6 $118,000 (81,600) (10,400) 20X7 $132,000 (93,600) (10,400) 20X8 $152,000 (96,600) (10,400) 20X9 $172,000 (129,600) $ 26,000 $ 28,000 $ 45,000 (10,400) $ 32,000 Alberta Mining and Export Corporation: Statement of Financial Position (partial) Machine (four-year life, no residual value), at cost Less: Accumulated depreciation AMEC has a tax rate of 40% for each of the relevant years. AMEC claimed the following amounts as CCA on its income tax filings: • 20X6: $17,600 • 20X7: $13,600 20X6 20X7 20X8 $ 41,600 $ 41,600 $ 41,600 $ 41,600 (10,400) (20,400) (30,400) (41,600) $ 31,200 $ 21,200 $ 11,200 $ 20X9 0 • 20X8: $6,400 • 20X9: $4,000. Note: AMEC had no deferred income tax balances at 1 January 20X6. Required: For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also net income. (Negative amounts and deductible amounts should be indicated by a minus sign.) Deferred income tax balance Net income 20X6 $ (2,880) $ $ 15,600 $ 20X7 20X8 20X9 (4,160) $ 16,800 $ (2,560) $ 30,200 $ 0 24,160 x

FINANCIAL ACCOUNTING
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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ed The Alberta Mining and Export Corporation (AMEC) has operations at several locations throughout the province of Alberta in Western Canada. AMEC reports under IFRS as a publicly traded company. AMEC reported the following financial results (all pre-tax amounts) for the years 20X6 through 20X9: Alberta Mining and Export Corporation: Statement of Profit and Loss (summarized) Revenues Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income 20X6 $118,000 (81,600) (10,400) 20X7 $132,000 (93,600) (10,400) 20X8 $152,000 (96,600) (10,400) 20X9 $172,000 (129,600) $ 26,000 $ 28,000 $ 45,000 (10,400) $ 32,000 Alberta Mining and Export Corporation: Statement of Financial Position (partial) Machine (four-year life, no residual value), at cost Less: Accumulated depreciation AMEC has a tax rate of 40% for each of the relevant years. AMEC claimed the following amounts as CCA on its income tax filings: • 20X6: $17,600 • 20X7: $13,600 20X6 20X7 20X8 $ 41,600 $ 41,600 $ 41,600 $ 41,600 (10,400) (20,400) (30,400) (41,600) $ 31,200 $ 21,200 $ 11,200 $ 20X9 0 • 20X8: $6,400 • 20X9: $4,000. Note: AMEC had no deferred income tax balances at 1 January 20X6. Required: For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also net income. (Negative amounts and deductible amounts should be indicated by a minus sign.) Deferred income tax balance Net income 20X6 $ (2,880) $ $ 15,600 $ 20X7 20X8 20X9 (4,160) $ 16,800 $ (2,560) $ 30,200 $ 0 24,160 x
Transcribed Image Text:ed The Alberta Mining and Export Corporation (AMEC) has operations at several locations throughout the province of Alberta in Western Canada. AMEC reports under IFRS as a publicly traded company. AMEC reported the following financial results (all pre-tax amounts) for the years 20X6 through 20X9: Alberta Mining and Export Corporation: Statement of Profit and Loss (summarized) Revenues Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income 20X6 $118,000 (81,600) (10,400) 20X7 $132,000 (93,600) (10,400) 20X8 $152,000 (96,600) (10,400) 20X9 $172,000 (129,600) $ 26,000 $ 28,000 $ 45,000 (10,400) $ 32,000 Alberta Mining and Export Corporation: Statement of Financial Position (partial) Machine (four-year life, no residual value), at cost Less: Accumulated depreciation AMEC has a tax rate of 40% for each of the relevant years. AMEC claimed the following amounts as CCA on its income tax filings: • 20X6: $17,600 • 20X7: $13,600 20X6 20X7 20X8 $ 41,600 $ 41,600 $ 41,600 $ 41,600 (10,400) (20,400) (30,400) (41,600) $ 31,200 $ 21,200 $ 11,200 $ 20X9 0 • 20X8: $6,400 • 20X9: $4,000. Note: AMEC had no deferred income tax balances at 1 January 20X6. Required: For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also net income. (Negative amounts and deductible amounts should be indicated by a minus sign.) Deferred income tax balance Net income 20X6 $ (2,880) $ $ 15,600 $ 20X7 20X8 20X9 (4,160) $ 16,800 $ (2,560) $ 30,200 $ 0 24,160 x
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