Please do not give solution in image format ? 4eBookThe financial statements of Dakar Corp. for a four-year period reflected the following pre-tax amounts:Statement of Profit and Loss (summarized)20x4$110,000(50,000)(10,000)$ 20,000RevenuesExpenses other than depreciationDepreciation expense (straight-line)Pre-tax accounting incomeMachine (four year life, no residual value), at costLess: Accumulated depreciationDeferred income tax balanceNet incomeStatement of Financial Position (partial)28X42005$124,00020X4(92,000)(10,000)20x5$ 22,00020XEDakar has a tax rate of 40% each year and claimed CCA for income tax purposes as follows: 20x4, $16,000; 20x5, $12,000; 20x6.$8,000; and 20x7. $4,000. There were no deferred income tax balances at 1 January 20X428X6$144,000(95,000)(10,000)$ 39,000Required:For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also netincome. (Negative amounts and deductible amounts should be indicated by a minus sign.)20x7$164,000(128,000)(10,000)$ 26,000200520x640,000 3$ 40,000 S 40,000 $(10.000) (20,000) (30,000)$30,000 $ 20,000 $ 10,000 S20X720x740,000(40,000)

The deferred income tax liability or asset is based on the difference between the financial…

The financial statements of Dekar Corp. for a four-year period reflected the following pre-tax amounts: Statement of Profit and Loss (sumarized) Revenues Expenses other than depreciation Depreciation expense (straight line) Pre-tax accounting income 20x4 $110,000 (80,000) (10,000) $ 20,000 2005 $124,000 (92,000) (10,000) $ 22,000 20x6 $144,000 (95,000) (30,000) $ 39,000 2017 $164,000 (128,000) (10,000) $ 26,000

The financial statements of Dekar Corp. for a four-year period reflected the following pre-tax amounts: Statement of Profit and Loss (sumarized) Revenues Expenses other than depreciation Depreciation expense (straight line) Pre-tax accounting income 20x4 $110,000 (80,000) (10,000) $ 20,000 2005 $124,000 (92,000) (10,000) $ 22,000 20x6 $144,000 (95,000) (30,000) $ 39,000 2017 $164,000 (128,000) (10,000) $ 26,000

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

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