Reference no: EM132718554

Ciscle Inc. started operations in 2008 and uses IFRS. The following financial information was provided to you, reported as at December 31, 2009:

Ciscle inc. 2009

Revenues $ 800,000
Depreciation expense 150,000
Other operating expenses 520,000
Property, Plant and Equipment, cost $ 1,400,000
Accumulated depreciation 230,000
Unearned rent revenue 40,000

Additional information:

1. Ciscle has a tax rate of 25% in 2008, 30% in 2009 and 35% in 2010 enacted in February each year.
2. Ciscle claimed total capital cost allowance for tax purposes of $255,000 in 2008 and $160,000 in 2009. 
3. In 2008 Ciscle sold an excess parcel of land for an amount of $500,000, generating a gain of $200,000. The receipt of cash from this sale was 30% down payment with the balance to be received, 40% in 2009 and 30% in 2010. However, this gain is taxed in the year it is received. 
4. The unearned rent revenue represents cash received in 2009 from a tenant who will be moving into the building on February 1, 2010 and relates to rent due in 2010. For tax purposes any cash received for future rent is taxed when the cash is received. 
5. Revenue in 2009 includes dividends received from taxable Canadian corporations of $10,000 and is not taxable.Required:
   

Problem 1: Prepare the income statement beginning with "income before taxes" for 2009.