FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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For the year ended December 31, 2023, Bramble Ltd. reported income before income taxes of $90,000.
In 2023, Bramble Ltd. paid $45,000 for rent; of this amount, $15,000 was expensed in 2023. The remaining $30,000 was treated as a
prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $45,000 was deductible
for tax purposes in 2023.
The company paid $72,000 in 2023 for membership in a local golf club (which was not deductible for tax purposes).
In 2023 Bramble Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $34,000, of which
$26,000 was actual repairs for 2023 and the remaining $8,000 was estimated repairs to be completed in 2024.
Meal and entertainment expenses totalled $22,000 in 2023, only half of which were deductible for income tax purposes.
Depreciation expense for 2023 was $230,000. Capital Cost Allowance (CCA) claimed for the year was $252,000.
Bramble was subject to a 20% income tax rate for 2023. Bramble follows IFRS.
Show Transcribed Text
S
* Your answer is incorrect.
Temporary differences
Calculate the amount of any temporary differences for 2023.
C
$
56,000
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Transcribed Image Text:For the year ended December 31, 2023, Bramble Ltd. reported income before income taxes of $90,000. In 2023, Bramble Ltd. paid $45,000 for rent; of this amount, $15,000 was expensed in 2023. The remaining $30,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $45,000 was deductible for tax purposes in 2023. The company paid $72,000 in 2023 for membership in a local golf club (which was not deductible for tax purposes). In 2023 Bramble Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $34,000, of which $26,000 was actual repairs for 2023 and the remaining $8,000 was estimated repairs to be completed in 2024. Meal and entertainment expenses totalled $22,000 in 2023, only half of which were deductible for income tax purposes. Depreciation expense for 2023 was $230,000. Capital Cost Allowance (CCA) claimed for the year was $252,000. Bramble was subject to a 20% income tax rate for 2023. Bramble follows IFRS. Show Transcribed Text S * Your answer is incorrect. Temporary differences Calculate the amount of any temporary differences for 2023. C $ 56,000
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