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What would the schedule starting

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Question - You are the accountant preparing a calculation of taxable income for ABC Company and have collected this data for 2020:

The company recorded an unrealized foreign exchange loss of $10,000 for accounting purposes. One-half was recognized for tax purposes ($5,000 received).

The company expensed interest to Canada Revenue Agency of $2,000 in the year.

Equipment was acquired in January 2020 for $150,000. Straight-line amortization over a 4-year life (no residual value) is used. For taxes, CCA is used and Freeride may deduct only 20% for 2020 (ignore the ½ year rule).

Dividend income of $5,000 was received/earned in 2020.

Actual warranty costs paid were $90,000. The accounting expense for the warranty liability related to 2020 was $60,000.

The company's tax rate is 12%. Pre-tax financial accounting income is $103,000.

What would the schedule starting with pretax financial accounting income be and would the taxable income be?

Reference no: EM132915563

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