Reference no: EM133207390

JasNav Ltd., a publicly accountable company, prepared the following income statement:

JasNav Ltd.
Income Statement
For the year ended December 31, 20x5
Revenues		$1,210,000
Cost of goods sold		730,000
Gross profit		480,000
Expenses
Depreciation	$25,000
Advertising	35,000
Warranty expense	85,000
Other	115,000	260,000
Net income before income taxes		$220,000

Additional information:

• Revenues include $80,000 rental income that is properly accrued for accounting purposes but will be included in taxable income next year.
• The undepreciated capital cost allowance at the beginning of the year is $847,000 and the class has a 20% maximum CCA rate.
• The net book value of depreciable assets was $960,000 at the beginning of the year.
• Additions to capital assets during the year totalled $75,000.
• A capital asset with a net book value of $40,000 was sold during the year for $25,000.
• Revenues include dividends received of $52,000 which are not taxable at any time
• Advertising includes $40,000 of advertising taken in US magazines which is not deductible at any time
• There is a loss carryforward of $48,000 available to be used this year. Management's estimate was that it was more likely than not that any loss carryforward would be used up within the allotted time.
• Warranty costs incurred on the company's one year warranty is $15,000.
• The tax rate is 40%.

Required:

Calculate the impact of income taxes on the Statement of Financial Position and income statement of JasNav Ltd. for the year 20x5.