For the year ended December 31, 2023, Tamarisk Ltd. reported income before income taxes of $98,000. In 2023, Tamarisk Ltd. paid $45,000 for rent; of this amount, $15,000 was expensed in 2023. The remaining $30,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $45,000 was deductible for tax purposes in 2023. The company paid $68,000 in 2023 for membership in a local golf club (which was not deductible for tax purposes). In 2023 Tamarisk Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $42,000, of which $35,000 was actual repairs for 2023 and the remaining $7,000 was estimated repairs to be completed in 2024. Meal and entertainment expenses totalled $20,000 in 2023, only half of which were deductible for income tax purposes. Depreciation expense for 2023 was $200,000. Capital Cost Allowance (CCA) claimed for the
For the year ended December 31, 2023, Tamarisk Ltd. reported income before income taxes of $98,000.
In 2023, Tamarisk Ltd. paid $45,000 for rent; of this amount, $15,000 was expensed in 2023. The remaining $30,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $45,000 was deductible for tax purposes in 2023.
The company paid $68,000 in 2023 for membership in a local golf club (which was not deductible for tax purposes).
In 2023 Tamarisk Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $42,000, of which $35,000 was actual repairs for 2023 and the remaining $7,000 was estimated repairs to be completed in 2024.
Meal and entertainment expenses totalled $20,000 in 2023, only half of which were deductible for income tax purposes.
Tamarisk was subject to a 20% income tax rate for 2023. Tamarisk follows IFRS.
(a) The CORRECT amount of permanent difference is $78,000.(NO NEED to calculate permanent difference)
(b) Calculate the amount of any temporary differences for 2023.
(c) Calculate taxable income and the amount of current income taxes payable for 2023
(d) Provide
(e) Calculate the amount of any
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