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 20X7 $126,000 Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income (80,400) (10,100) (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 Alberta Mining and Export Corporation: Statement of Financial Position (partial) Machine (four-year life, no residual value), at cost Less: Accumulated depreciation $ 20X6 20X7 20X8 20X9 40,400 $ 40,400 $ 40,400 $ 40,400 (10,100) (20,100) (30,100) (40,400) $ 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 20X7 $126,000 Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income (80,400) (10,100) (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 Alberta Mining and Export Corporation: Statement of Financial Position (partial) Machine (four-year life, no residual value), at cost Less: Accumulated depreciation $ 20X6 20X7 20X8 20X9 40,400 $ 40,400 $ 40,400 $ 40,400 (10,100) (20,100) (30,100) (40,400) $ 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
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Domestic
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
20X7
$126,000
Expenses other than depreciation
Depreciation expense (straight-line)
Pre-tax accounting income
(80,400)
(10,100)
(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
Alberta Mining and Export Corporation: Statement of Financial Position (partial)
Machine (four-year life, no residual value), at cost
Less: Accumulated depreciation
$
20X6
20X7
20X8
20X9
40,400 $ 40,400 $ 40,400 $ 40,400
(10,100) (20,100) (30,100) (40,400)
$ 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
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