Ivanhoe Inc. reports accounting income of $104,000 for 2023, its first year of operations. The following items cause taxable income to be different than income reported on the financial statements. 1. 2. 3. 4. Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $12,500. Rent revenue reported on the tax return is $18,750 higher than rent revenue reported on the income statement. Non-deductible fines appear as an expense of $10,500 on the income statement. Ivanhoe's tax rate is 30% for all years and the company expects to report taxable income in all future years. Ivanhoe reports under IFRS.
Ivanhoe Inc. reports accounting income of $104,000 for 2023, its first year of operations. The following items cause taxable income to be different than income reported on the financial statements. 1. 2. 3. 4. Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $12,500. Rent revenue reported on the tax return is $18,750 higher than rent revenue reported on the income statement. Non-deductible fines appear as an expense of $10,500 on the income statement. Ivanhoe's tax rate is 30% for all years and the company expects to report taxable income in all future years. Ivanhoe reports under IFRS.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
dont uplode any image in answer
![Prepare the journal entries to record income taxes for 2023. (List all debit entries before credit entries. 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 o for the amounts. Do not net entries to deferred tax asset and deferred tax liability)
Year Account Titles and Explanation
2023
2023
(To record current tax expense)
(To record deferred tax benefit)
Debit
Credit
10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1a4eeb32-1652-4622-80f9-de25f0a55277%2F927516be-9612-4772-b8e6-616235049843%2Fdt64qvah_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare the journal entries to record income taxes for 2023. (List all debit entries before credit entries. 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 o for the amounts. Do not net entries to deferred tax asset and deferred tax liability)
Year Account Titles and Explanation
2023
2023
(To record current tax expense)
(To record deferred tax benefit)
Debit
Credit
10
![Ivanhoe Inc. reports accounting income of $104,000 for 2023, its first year of operations. The following items cause taxable income to
be different than income reported on the financial statements.
1.
2.
3.
4.
Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $12,500.
Rent revenue reported on the tax return is $18,750 higher than rent revenue reported on the income statement.
Non-deductible fines appear as an expense of $10,500 on the income statement.
Ivanhoe's tax rate is 30% for all years and the company expects to report taxable income in all future years. Ivanhoe reports
under IFRS.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1a4eeb32-1652-4622-80f9-de25f0a55277%2F927516be-9612-4772-b8e6-616235049843%2Feuxx86b_processed.png&w=3840&q=75)
Transcribed Image Text:Ivanhoe Inc. reports accounting income of $104,000 for 2023, its first year of operations. The following items cause taxable income to
be different than income reported on the financial statements.
1.
2.
3.
4.
Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $12,500.
Rent revenue reported on the tax return is $18,750 higher than rent revenue reported on the income statement.
Non-deductible fines appear as an expense of $10,500 on the income statement.
Ivanhoe's tax rate is 30% for all years and the company expects to report taxable income in all future years. Ivanhoe reports
under IFRS.
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