The following information applies to Wildhorse Corporation, which reports under IFRS.1.Prior to 2022, taxable income and accounting income were identical.2. Accounting income was $1.7 million in 2022 and $1.49 million in 2023.3.On January 1, 2022, equipment costing $1.43 million was purchased. It is being depreciated on a straight-line basis over eightyears for financial reporting purposes, and is a Class 8-20% asset for tax purposes.4.Tax-exempt interest income of $60,000 was received in 2023.5.The tax rate is 30% for all periods.6.Taxable income is expected in all future years.7.Wildhorse had 100,000 common shares outstanding throughout 2023.(a)Your AnswerCorrect Answer (Used)Calculate the amount of capital cost allowance and depreciation expense for 2022 and 2023, and the corresponding carryingamount and undepreciated capital cost of the depreciable assets at the end of 2022 and 2023.(b)Capital CostAllowanceUndepreciatedCapital Cost429,0001,001,000200,200800,800Determine the amount of current and deferred tax expense for 2023.Current income tax expenseDeferred tax expenseDepreciationExpense178,750Net BookValue1,251,250178,7501,072,500

Name: The following information applies to Wildhorse Corporation, which rep
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Description: The following information applies to Wildhorse Corporation, which reports under IFRS.1.Prior to 2022, taxable income and accounting income were identical.2. Accounting income was $1.7 million in 2022 and $1.49 million in 2023.3.On January 1, 2022, e

Capital cost allowance: Capital cost allowance is the deduction provided to the taxpayer for…

Business

Accounting

(a) Your Answer Correct Answer (Used) Calculate the amount of capital cost allowance and depreciation expense for 2022 and 2023, and the corresponding carrying amount and undepreciated capital cost of the depreciable assets at the end of 2022 and 2023. (b) Capital Cost Undepreciated Allowance Capital Cost 429,000 1,001,000 200,200 Depreciation Expense 178,750 Net Book Value 1,251,250 800,800 178,750 1,072,500 Determine the amount of current and deferred tax expense for 2023. Current income tax expense Deferred tax expense

(a) Your Answer Correct Answer (Used) Calculate the amount of capital cost allowance and depreciation expense for 2022 and 2023, and the corresponding carrying amount and undepreciated capital cost of the depreciable assets at the end of 2022 and 2023. (b) Capital Cost Undepreciated Allowance Capital Cost 429,000 1,001,000 200,200 Depreciation Expense 178,750 Net Book Value 1,251,250 800,800 178,750 1,072,500 Determine the amount of current and deferred tax expense for 2023. Current income tax expense Deferred tax expense

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: accounting
Find the net fair value of an asset
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Depreciation expense for 2020
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elearning.act.edu.om/mod/quiz/attempt.php?attempt%3D2417948cmid-909918page-2@ Muzna Salim Mohammed AISaadi The expected amount that an entity would currently obtain from disposal of the asset after deducting the estimated costs of disposal fair value recoverable amount residual value carrying amount