Ivanhoe Inc. reports accounting income of $114,200 for 2023, its first year of operations. The following items cause taxable income to be different than income reported on the financial statements. 1. 2. 3. Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $19,300. Rent revenue reported on the tax return is $33,900 higher than rent revenue reported on the income statement. Non-deductible fines appear as an expense of $24,700 on the income statement. 4. Ivanhoe's tax rate is 30% for all years and the company expects to report taxable income in all future years. Assume that the company follows the taxes payable method of accounting for income taxes under ASPE. During the year, Ivanhoe made tax instalment payments of $50,250.
Ivanhoe Inc. reports accounting income of $114,200 for 2023, its first year of operations. The following items cause taxable income to be different than income reported on the financial statements. 1. 2. 3. Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $19,300. Rent revenue reported on the tax return is $33,900 higher than rent revenue reported on the income statement. Non-deductible fines appear as an expense of $24,700 on the income statement. 4. Ivanhoe's tax rate is 30% for all years and the company expects to report taxable income in all future years. Assume that the company follows the taxes payable method of accounting for income taxes under ASPE. During the year, Ivanhoe made tax instalment payments of $50,250.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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Question
Prepare the income statement for 2023, beginning with the line "income before income taxes.
Transcribed Image Text:Ivanhoe Inc. reports accounting income of $114,200 for 2023, its first year of operations. The following items cause taxable income to
be different than income reported on the financial statements.
1.
2.
3.
Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $19,300.
Rent revenue reported on the tax return is $33,900 higher than rent revenue reported on the income statement.
Non-deductible fines appear as an expense of $24,700 on the income statement.
4.
Ivanhoe's tax rate is 30% for all years and the company expects to report taxable income in all future years.
Assume that the company follows the taxes payable method of accounting for income taxes under ASPE. During the year, Ivanhoe
made tax instalment payments of $50,250.
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