p. Deferred Taxes Aylmer has a corporate tax rate of 28%. There are two differences that have been identified: Assume that CCA (Capital Cost Allowance) for tax purposes was $20,000 more that straight-line depreciation calculated. Included in administrative expenses are golf club dues that total $6,200. There was no deferred tax liability or asset in 2019 or prior years. In the Excel spreadsheet, see the tab labelled “Deferred Taxes" to make any calculations, including an amortization schedule, to support journal entries.
p. Deferred Taxes Aylmer has a corporate tax rate of 28%. There are two differences that have been identified: Assume that CCA (Capital Cost Allowance) for tax purposes was $20,000 more that straight-line depreciation calculated. Included in administrative expenses are golf club dues that total $6,200. There was no deferred tax liability or asset in 2019 or prior years. In the Excel spreadsheet, see the tab labelled “Deferred Taxes" to make any calculations, including an amortization schedule, to support journal entries.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please include all steps of calculations for my reference. Thanks!
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Transcribed Image Text:p. Deferred Taxes
Aylmer has a corporate tax rate of 28%.
There are two differences that have been identified:
Assume that CCA (Capital Cost Allowance) for tax purposes was $20,000 more that straight-line
depreciation calculated. Included in administrative expenses are golf club dues that total $6,200.
There was no deferred tax liability or asset in 2019 or prior years.
In the Excel spreadsheet, see the tab labelled "Deferred Taxes" to make any calculations,
including an amortization schedule, to support journal entries.
Transcribed Image Text:a) Calculate taxable income for 2020:
Accounting Income
500,000 ASSUME THIS IS CORRECT!
b) Calculate the deferred tax asset or liability at Dec 31, 2020
BV
deductible
balance
tax
asset
(taxable)
tax
DT Asset
Account
base
|(liability)
difference rate
(DT Liab)
c) Prepare any adjusting entries that would be required related to income tax for 2020.
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