The Alberta Mining and Export Corporation (AMEC) has operations at several locations throughout the province of Alberta in Western Canada. AMEC reports under IFRS as a publicly traded company. AMEC reported the following financial results (all pre-tax amounts) for the years 20X6 through 20X9: Alberta Mining and Export Corporation: Statement of Profit and Loss (summarized) Revenues 20X6 $112,000 Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income (80,400) (10,100) 20X7 $126,000 (92,400) (10,100) 20X8 $146,000 (95,400) (10,100) 20X9 $166,000 (128,400) (10,100) $ 21,500 $ 23,500 $ 40,500 $ 27,500 Machine (four-year life, no residual value), at cost Less: Accumulated depreciation Alberta Mining and Export Corporation: Statement of Financial Position (partial) 20X6 20X7 $ 40,400 $ 40,400 $ 40,400 $ 40,400 (10,100) (20,100) (30,100) (40,400) 20X8 20X9 $ 30,300 $ 20,300 $ 10,300 $ 0 AMEC has a tax rate of 40% for each of the relevant years. AMEC claimed the following amounts as CCA on its income tax filings: • 20X6: $16,400 • 20X7: $12,400 • 20X8: $7,600 • 20X9: $4,000. Note: AMEC had no deferred income tax balances at 1 January 20X6. Required: For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also net income. (Negative amounts and deductible amounts should be indicated by a minus sign.) Deferred income tax balance Net income 20X6 20X7 20X8 20X9
The Alberta Mining and Export Corporation (AMEC) has operations at several locations throughout the province of Alberta in Western Canada. AMEC reports under IFRS as a publicly traded company. AMEC reported the following financial results (all pre-tax amounts) for the years 20X6 through 20X9: Alberta Mining and Export Corporation: Statement of Profit and Loss (summarized) Revenues 20X6 $112,000 Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income (80,400) (10,100) 20X7 $126,000 (92,400) (10,100) 20X8 $146,000 (95,400) (10,100) 20X9 $166,000 (128,400) (10,100) $ 21,500 $ 23,500 $ 40,500 $ 27,500 Machine (four-year life, no residual value), at cost Less: Accumulated depreciation Alberta Mining and Export Corporation: Statement of Financial Position (partial) 20X6 20X7 $ 40,400 $ 40,400 $ 40,400 $ 40,400 (10,100) (20,100) (30,100) (40,400) 20X8 20X9 $ 30,300 $ 20,300 $ 10,300 $ 0 AMEC has a tax rate of 40% for each of the relevant years. AMEC claimed the following amounts as CCA on its income tax filings: • 20X6: $16,400 • 20X7: $12,400 • 20X8: $7,600 • 20X9: $4,000. Note: AMEC had no deferred income tax balances at 1 January 20X6. Required: For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also net income. (Negative amounts and deductible amounts should be indicated by a minus sign.) Deferred income tax balance Net income 20X6 20X7 20X8 20X9
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The Alberta Mining and Export Corporation (AMEC) has operations at several locations throughout the province of Alberta in Western
Canada.
AMEC reports under IFRS as a publicly traded company.
AMEC reported the following financial results (all pre-tax amounts) for the years 20X6 through 20X9:
Alberta Mining and Export Corporation: Statement of Profit and Loss (summarized)
Revenues
20X6
$112,000
Expenses other than depreciation
Depreciation expense (straight-line)
Pre-tax accounting income
(80,400)
(10,100)
20X7
$126,000
(92,400)
(10,100)
20X8
$146,000
(95,400)
(10,100)
20X9
$166,000
(128,400)
(10,100)
$ 21,500
$ 23,500
$ 40,500
$ 27,500
Machine (four-year life, no residual value), at cost
Less: Accumulated depreciation
Alberta Mining and Export Corporation: Statement of Financial Position (partial)
20X6
20X7
$ 40,400 $ 40,400 $ 40,400 $ 40,400
(10,100) (20,100) (30,100) (40,400)
20X8
20X9
$ 30,300 $ 20,300 $ 10,300 $
0
AMEC has a tax rate of 40% for each of the relevant years.
AMEC claimed the following amounts as CCA on its income tax filings:
• 20X6: $16,400
• 20X7: $12,400
• 20X8: $7,600
• 20X9: $4,000.
Note: AMEC had no deferred income tax balances at 1 January 20X6.
Required:
For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also net
income. (Negative amounts and deductible amounts should be indicated by a minus sign.)
Deferred income tax balance
Net income
20X6
20X7
20X8
20X9
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