Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. crane corporation follows ifrs. prior to 2022, the

Crane Corporation follows IFRS. Prior to 2022, the accounting income and taxable income for Crane...

60.1K

Verified Solution

Question

Accounting

Crane Corporation follows IFRS. Prior to 2022, the accounting income and taxable income for Crane were the same. On January 1, 2022, the company purchased equipment at a cost of $1,266,000. For accounting purposes, the equipment was to be depreciated over six years using the straight-line method and no residual value. For income tax purposes, the equipment was subject to a CCA rate of 30% and was eligible for the Accelerated Investment Incentive (1.5 times the CCA rate applies for 2022). Cranes income before tax for accounting purposes for 2023 was $11,700,000. The company was subject to a 20% income tax rate for all applicable years and anticipated profitable years for the foreseeable future.

(a)

Calculate the amount of the temporary difference for equipment and net change in deferred tax asset/liability.

Net change in deferred tax asset/liability

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

Whenever a photon is emitted by hydrogen atom in Balmer series it is followed by...

Physics
1.2K views

The figure shows a cut-away drawing of a thermos bottle (also known as a Dewar flask),...

Biology
1.2K views

The electron transport chain is a series of diffusion facilitating membrane proteins found in

Physics
1.2K views

View in English One face of a rectangular glass plate 6 cm thick is silvered...

Physics
1.2K views

Two blocks of masses m and 2m are placed in contact on a smooth horizontal...

Geometry
1.2K views

OA is inscribed in a quadrilateral What is the perimeter of the quadrilateral 3 mm...

Geometry
1.2K views

7 5 y For both figures A 6 4 3 2 1 16 units O...

Accounting
1.2K views

Q6 Sale of short-term investments Cash collections from customers Purchase of...

Accounting
1.2K views

Net Capable Sdn Bhd provides internet space to various businesses to place their products to...

Accounting
1.2K views

Regarding Capital Gain and Debt Cancellation Income recognition when taxpayers transfer Bitcoin (Notice 2014-21, 2014-16...

Accounting
1.2K views

When IFRS uses the cost recovery method to account for a long-term contract,: ...

Accounting
1.2K views

Derby University sells 5,600 season basketball tickets at $230 each for its 14-game home schedule....