Solution-Calculate taxable income and income tax payable

Calculate taxable income and income tax payable

Reference no: EM132870343

Problem - Flint Corporation purchased equipment very late in 2020. Based on generous capital cost allowance rates provided in the Income Tax Act, Flint Corporation claimed CCA on its 2020 tax return but did not record any depreciation because the equipment was being tested. This temporary difference will reverse and cause taxable amounts of $29,800 in 2021, $30,400 in 2022, and $45,600 in 2023. Flint's accounting income for 2020 is $223,600 and the tax rate is 30% for all years. There are no deferred tax accounts at the beginning of 2020.

1-Calculate the deferred tax balance at December 31, 2020.

2-Calculate taxable income and income tax payable for 2020.

3-Prepare the journal entries to record income taxes for 2020.

Reference no: EM132870343

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Calculate taxable income and income tax payable

Reference no: EM132870343

Reference no: EM132870343

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