Calculate taxable income and taxes payable for kingbird corp

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Prior to 2019, the accounting income and taxable income for Kingbird Corporation were the same. On January 1, 2019, the company purchased equipment at a cost of $441,000. For accounting purposes, the equipment was to be depreciated over 9 years using the straight-line method. For income tax purposes, the equipment was subject to a CCA rate of 20% (half-year rule applies for 2019). Kingbird's income before tax for accounting purposes for 2020 was $1,974,000. The company was subject to a 25% income tax rate for all applicable years and anticipated profitable years for the foreseeable future. Kingbird Corporation follows IFRS.

Problem 1: Calculate taxable income and taxes payable for 2020

Reference no: EM132833898

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