Nilson Inc. had accounting income of $156,000 in 2023. Included in the calculation of that amount is the CEO's life insuranceexpense of $5,000, which is not deductible for tax purposes. In addition, the UCC for tax purposes is $14,000 lower than the netcarrying amount of the property, plant, and equipment, although the amounts were equal at the beginning of the year.Prepare Nilson's journal entries to record 2023 taxes, assuming the company follows IFRS and has a tax rate of 25%. (List all debitentries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indentmanually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)Date Account Titles and Explanation20232023G(To record current tax expense)(To record deferred tax expense)DebitCreditUN 1.2.3.4.5.(a)CCA that was reported on the 2023 tax return exceeded depreciation reported on the income statement by $160,000. Thisdifference is expected to reverse in equal amounts of $40,000 per year over the period 2024 to 2027.Dividends received from taxable Canadian corporations were $23,000.Rent collected in advance on January 1, 2023, totalled $90,000 for a three-year period. Of this amount, $60,000 wasreported as unearned for book purposes at December 31, 2023.The tax rates are 25% for 2023 and 30% for 2024 and subsequent years.Income taxes payable are $200,000 for 2023,Calculate taxable income for 2023.Taxable income $At December 31, 2023, Camille Corporation had an estimated warranty liability of $256,000 for accounting purposes and $0 for taxpurposes. (The warranty costs are not deductible until they are paid.) The tax rate is 25%.Calculate the amount that Camille should report as a deferred tax asset at December 31, 2023.Deferred tax asset $

In order to get the actual income tax expenses the taxable income is required to be computed so that…

Nilson Inc. had accounting income of $156,000 in 2023. Included in the calculation of that amount is the CEO's life insurance expense of $5,000, which is not deductible for tax purposes. In addition, the UCC for tax purposes is $14,000 lower than the net carrying amount of the property, plant, and equipment, although the amounts were equal at the beginning of the year. Prepare Nilson's journal entries to record 2023 taxes, assuming the company follows IFRS and has a tax rate of 25%. (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 0 for the amounts.)

Nilson Inc. had accounting income of $156,000 in 2023. Included in the calculation of that amount is the CEO's life insurance expense of $5,000, which is not deductible for tax purposes. In addition, the UCC for tax purposes is $14,000 lower than the net carrying amount of the property, plant, and equipment, although the amounts were equal at the beginning of the year. Prepare Nilson's journal entries to record 2023 taxes, assuming the company follows IFRS and has a tax rate of 25%. (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 0 for the amounts.)

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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Grouper Company reports pretax financial income of $68,400 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $17,000. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $21,000. 3. Fines for pollution appear as an expense of $10,300 on the income statement. Grouper’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. (a) Compute taxable income and income taxes payable for 2020. Taxable income $enter a dollar amount Income taxes payable $enter a dollar amount (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are…
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