Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in 2023, vaughn ltd., which follows ifrs, reported

In 2023, Vaughn Ltd., which follows IFRS, reported accounting income of $328,000 and the 2023...

70.2K

Verified Solution

Question

Accounting

In 2023, Vaughn Ltd., which follows IFRS, reported accounting income of $328,000 and the 2023 tax rate was 18%. Vaughn had two timing differences for tax purposes:
CCA on the company's tax return was $346,300. Depreciation expense on the financial statements was $222,000.
Accrued warranty expense for financial statement purposes was $84,700(accrued expenses are not deductible for tax purposes). This is the first year Vaughn offers warranties.
Both of these timing differences are expected to fully reverse over the next four years, as follows:
\table[[Year,\table[[Depreciation],[Difference]],\table[[Warranty],[Expense]],Rate],[2024,$41,700,$11,000,17%
image

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