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Skysong Enterprises Ltd$.,$ a private company following ASPE earned accounting income before taxes of $$1,712,000$ for the year ended

December $31,2023.$

During $2023,$ Skysong paid $$240,000$ for meals and entertainment expenses.

In $2020,$ Skysong's tax accountant made a mistake when preparing the company's income tax return. In $2023,$ Skysong paid $$17,000$ in

penalties related to this error. These penalties were not deductible for tax purposes.

Skysong owned a warehouse building for which it had no current use, so the company chose to use the building as a rental property. At

the beginning of $2023,$ Skysong rented the building to SPK Inc. for two years at $$260,000$ per year. SPK paid the entire two years' rent

in advance.

Skysong used the straight$-$line depreciation method for accounting purposes and recorded depreciation expense of $$396,000.$ For tax

purposes, Skysong claimed the maximum capital cost allowance of $$621,000.$

Skysong began to sell its products with a two$-$year warranty against manufacturing defects in $2023$ to match a warranty introduced by

its main competitor. In $2023,$ Skysong accrued $$578,000$ of warranty expenses: actual expenditures for $2023$ were $$277,000$ with the

remaining $$301,000$ anticipated in $2024.$

In $2023,$ Skysong was subject to a $35\%$ income tax rate. During the year, the federal government announced that tax rates would be

decreased to $33\%$ for all future years beginning January $1,2024.$

$($a$)$

Y Your answer is correct.

Calculate the amount of any permanent differences for $2023.$

Permanent differences $

eTextbook and Media

List of Accounts

$($b$)$

Calculate the amount of any temporary differences for $2023.$

Temporary differences $

eTextbook and Media

List of Accounts

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