Grouper Corporation, which follows IFRS, began operations on January 1, 2020. For the company's first fiscal year, Grouper recorded pretax income for accounting purposes of $2,560,000. Depreciation of property, plant, and equipment for financial reporting purposes amounted to $136,000. CCA claimed on the company's tax return was $155,000. Grouper was subject to a 38% income tax rate. Calculate Grouper Corporation's taxable income and income tax payable for 2020. Taxable income for 2020 $ Income taxes payable for 2020 $ Prepare the journal entries to record the 2020 current and deferred income taxes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation (To record current tax expense.) (To record deferred tax expense.) Debit Credit
Grouper Corporation, which follows IFRS, began operations on January 1, 2020. For the company's first fiscal year, Grouper recorded pretax income for accounting purposes of $2,560,000. Depreciation of property, plant, and equipment for financial reporting purposes amounted to $136,000. CCA claimed on the company's tax return was $155,000. Grouper was subject to a 38% income tax rate. Calculate Grouper Corporation's taxable income and income tax payable for 2020. Taxable income for 2020 $ Income taxes payable for 2020 $ Prepare the journal entries to record the 2020 current and deferred income taxes. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation (To record current tax expense.) (To record deferred tax expense.) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Ef 567.
Transcribed Image Text:Grouper Corporation, which follows IFRS, began operations on January 1, 2020. For the company's first fiscal year,
Grouper recorded pretax income for accounting purposes of $2,560,000. Depreciation of property, plant, and equipment
for financial reporting purposes amounted to $136,000. CCA claimed on the company's tax return was $155,000. Grouper
was subject to a 38% income tax rate.
Calculate Grouper Corporation's taxable income and income tax payable for 2020.
Taxable income for 2020
$
Income taxes payable for 2020
Prepare the journal entries to record the 2020 current and deferred income taxes. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account
titles and enter 0 for the amounts.)
Account Titles and Explanation
(To record current tax expense.)
$
(To record deferred tax expense.)
Debit Credit
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