Prior to 2019, the accounting income and taxable income for Bridgeport Corporation were the same. On...

Prior to 2019, the accounting income and taxable income for Bridgeport Corporation were the same. On January 1, 2019, the company purchased equipment at a cost of $576,000. For accounting purposes, the equipment was to be depreciated over 9 years using the straight-line method. For income tax purposes, the equipment was subject to a CCA rate of 20% (half-year rule applies for 2019). Bridgeport’s income before tax for accounting purposes for 2020 was $1,892,000. The company was subject to a 25% income tax rate for all applicable years and anticipated profitable years for the foreseeable future. Bridgeport Corporation follows IFRS.

a) Calculate taxable income and taxes payable for 2020.

Taxable income, 2020		$
Taxes payable, 2020		$

b) Prepare the journal entries to record 2020 income taxes (current and deferred). (If no entry is required, select "No Entry" )

Account Titles and Explanation	Debit	Credit


(To record current income taxes)



(Record the net change from 2019 to 2020.)

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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