Nilson Inc. had accounting income of $156,000 in 2023. Included in the calculation of that amount is the CEO's life insurance expense of $5,000, which is not deductible for tax purposes. In addition, the UCC for tax purposes is $14,000 lower than the net carrying amount of the property, plant, and equipment, although the amounts were equal at the beginning of the year. Prepare Nilson's journal entries to record 2023 taxes, assuming the company follows IFRS and has a tax rate of 25%. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Nilson Inc. had accounting income of $156,000 in 2023. Included in the calculation of that amount is the CEO's life insurance expense of $5,000, which is not deductible for tax purposes. In addition, the UCC for tax purposes is $14,000 lower than the net carrying amount of the property, plant, and equipment, although the amounts were equal at the beginning of the year. Prepare Nilson's journal entries to record 2023 taxes, assuming the company follows IFRS and has a tax rate of 25%. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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 14P
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Transcribed Image Text:Nilson Inc. had accounting income of $156,000 in 2023. Included in the calculation of that amount is the CEO's life insurance
expense of $5,000, which is not deductible for tax purposes. In addition, the UCC for tax purposes is $14,000 lower than the net
carrying amount of the property, plant, and equipment, although the amounts were equal at the beginning of the year.
Prepare Nilson's journal entries to record 2023 taxes, assuming the company follows IFRS and has a tax rate of 25%. (List all debit
entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date Account Titles and Explanation
2023
2023
G
(To record current tax expense)
(To record deferred tax expense)
Debit
Credit
UN
Transcribed Image Text:1.
2.
3.
4.
5.
(a)
CCA that was reported on the 2023 tax return exceeded depreciation reported on the income statement by $160,000. This
difference is expected to reverse in equal amounts of $40,000 per year over the period 2024 to 2027.
Dividends received from taxable Canadian corporations were $23,000.
Rent collected in advance on January 1, 2023, totalled $90,000 for a three-year period. Of this amount, $60,000 was
reported as unearned for book purposes at December 31, 2023.
The tax rates are 25% for 2023 and 30% for 2024 and subsequent years.
Income taxes payable are $200,000 for 2023,
Calculate taxable income for 2023.
Taxable income $
At December 31, 2023, Camille Corporation had an estimated warranty liability of $256,000 for accounting purposes and $0 for tax
purposes. (The warranty costs are not deductible until they are paid.) The tax rate is 25%.
Calculate the amount that Camille should report as a deferred tax asset at December 31, 2023.
Deferred tax asset $
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