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Sunland Corporation purchased equipment very late in 2023. Based on generous capital cost allowance rates...

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Accounting

Sunland Corporation purchased equipment very late in 2023. Based on generous capital cost allowance rates provided in the Income Tax Act, Sunland claimed CCA on its 2023 tax return but did not record any depreciation because the equipment was being tested. This temporary difference will reverse and cause taxable amounts of $27,500 in 2024, $34,100 in 2025, and $40,800 in 2026. Sunlands accounting income for 2023 is $220,800 and $184,800 in each of 2024 and 2025, and the tax rate is 30%. There are no deferred tax accounts at the beginning of 2023. Sunland Corporation was informed on December 31, 2024 that the enacted rate for 2025 and subsequent years is 25%.

(b)

Calculate taxable income and income tax payable for 2024 and 2025.

2024

2025

Taxable income

 $enter a dollar amount $enter a dollar amount

Income taxes payable

 $enter a dollar amount $enter a dollar amount

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