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The following information relates to the accounting income for Manitoba Uranium Enterprises (MUE) for the current year ended December 31. (Click the icon to view the information.) During the year, the company sold one of its machines with carrying value of $50,000 for proceeds of $40,000, resulting in an accounting loss of $10,000. This loss has been included in the pre-tax income figure of $860,000 shown above. For tax purposes, the proceeds from the disposal were removed from the undepreciated capital cost (UCC) of Class 8 assets. The deferred income tax liability account on January 1 had a credit balance of $130,000. This balance is entirely related to property, plant, and equipment (PPE). Required Prepare the journal entries to record income taxes for MUE. Information Accounting income before income taxes me for with the acted, $ 860,000 Depreciation and depletion expense 410,000 Capital cost allowance claimed 550,000 ed tax credit) Membership initiation fees (not deductible) 30,000 Loss on disposal of equipment-see additional information below 10,000 Income tax rate 35%

The following information relates to the accounting income for Manitoba Uranium Enterprises (MUE) for the current year ended December 31. (Click the icon to view the information.) During the year, the company sold one of its machines with carrying value of $50,000 for proceeds of $40,000, resulting in an accounting loss of $10,000. This loss has been included in the pre-tax income figure of $860,000 shown above. For tax purposes, the proceeds from the disposal were removed from the undepreciated capital cost (UCC) of Class 8 assets. The deferred income tax liability account on January 1 had a credit balance of $130,000. This balance is entirely related to property, plant, and equipment (PPE). Required Prepare the journal entries to record income taxes for MUE. Information Accounting income before income taxes me for with the acted, $ 860,000 Depreciation and depletion expense 410,000 Capital cost allowance claimed 550,000 ed tax credit) Membership initiation fees (not deductible) 30,000 Loss on disposal of equipment-see additional information below 10,000 Income tax rate 35%

FINANCIAL ACCOUNTING
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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The following information relates to the accounting income for Manitoba Uranium Enterprises (MUE) for the current year ended December 31. (Click the icon to view the information.) During the year, the company sold one of its machines with carrying value of $50,000 for proceeds of $40,000, resulting in an accounting loss of $10,000. This loss has been included in the pre-tax income figure of $860,000 shown above. For tax purposes, the proceeds from the disposal were removed from the undepreciated capital cost (UCC) of Class 8 assets. The deferred income tax liability account on January 1 had a credit balance of $130,000. This balance is entirely related to property, plant, and equipment (PPE). Required Prepare the journal entries to record income taxes for MUE. Information Accounting income before income taxes me for with the acted, $ 860,000 Depreciation and depletion expense 410,000 Capital cost allowance claimed 550,000 ed tax credit) Membership initiation fees (not deductible) 30,000 Loss on disposal of equipment-see additional information below 10,000 Income tax rate 35%
Transcribed Image Text:The following information relates to the accounting income for Manitoba Uranium Enterprises (MUE) for the current year ended December 31. (Click the icon to view the information.) During the year, the company sold one of its machines with carrying value of $50,000 for proceeds of $40,000, resulting in an accounting loss of $10,000. This loss has been included in the pre-tax income figure of $860,000 shown above. For tax purposes, the proceeds from the disposal were removed from the undepreciated capital cost (UCC) of Class 8 assets. The deferred income tax liability account on January 1 had a credit balance of $130,000. This balance is entirely related to property, plant, and equipment (PPE). Required Prepare the journal entries to record income taxes for MUE. Information Accounting income before income taxes me for with the acted, $ 860,000 Depreciation and depletion expense 410,000 Capital cost allowance claimed 550,000 ed tax credit) Membership initiation fees (not deductible) 30,000 Loss on disposal of equipment-see additional information below 10,000 Income tax rate 35%
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