Ivanhoe Inc. reports accounting income of $114,200 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. Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $19,300. Rent revenue reported on the tax return is $33,900 higher than rent revenue reported on the income statement. Non-deductible fines appear as an expense of $24,700 on the income statement. 4. Ivanhoe's tax rate is 30% for all years and the company expects to report taxable income in all future years. Assume that the company follows the taxes payable method of accounting for income taxes under ASPE. During the year, Ivanhoe made tax instalment payments of $50,250.
Ivanhoe Inc. reports accounting income of $114,200 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. Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $19,300. Rent revenue reported on the tax return is $33,900 higher than rent revenue reported on the income statement. Non-deductible fines appear as an expense of $24,700 on the income statement. 4. Ivanhoe's tax rate is 30% for all years and the company expects to report taxable income in all future years. Assume that the company follows the taxes payable method of accounting for income taxes under ASPE. During the year, Ivanhoe made tax instalment payments of $50,250.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare the income statement for 2023, beginning with the line "income before income taxes.
Transcribed Image Text:Ivanhoe Inc. reports accounting income of $114,200 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.
Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $19,300.
Rent revenue reported on the tax return is $33,900 higher than rent revenue reported on the income statement.
Non-deductible fines appear as an expense of $24,700 on the income statement.
4.
Ivanhoe's tax rate is 30% for all years and the company expects to report taxable income in all future years.
Assume that the company follows the taxes payable method of accounting for income taxes under ASPE. During the year, Ivanhoe
made tax instalment payments of $50,250.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education