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The Alberta Mining and Export Corporation (AMEC) has operations at several locations throughout the province of Alberta in Western Canada. AMEC reports under IFRS as a publicly traded company. AMEC reported the following financial results (all pre-tax amounts) for the years 20X6 through 20X9: Alberta Mining and Export Corporation: Statement of Profit and Loss (summarized) Revenues 20X6 $120,000 Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income (82,000) (10,500) 20X7 $134,000 (94,000) (10,500) 20X8 $154,000 20X9 (97,000) (10,500) $174,000 (130,000) (10,500) $ 27,500 $ 29,500 $ 46,500 $ 33,500 Alberta Mining and Export Corporation: Statement of Financial Position (partial) 20X6 20X7 Machine (four-year life, no residual value), at cost Less: Accumulated depreciation $ 20X8 42,000 $ 42,000 42,000 $ (10,500) (20,500) (30,500) 20X9 42,000 (42,000) $ 31,500 $ 21,500 $ 11,500 $ AMEC has a tax rate of 40% for each of the relevant years. AMEC claimed the following amounts as CCA on its income tax filings: . 20X6: $18,000 .20X7: $14,000 • 20X8: $6,000 • 20X9: $4,000. Note: AMEC had no deferred income tax balances at 1 January 20X6. Required: For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also net income. (Negative amounts and deductible amounts should be indicated by a minus sign.) Deferred income tax balance Net income 20X6 20X7 20X8 20X9

The Alberta Mining and Export Corporation (AMEC) has operations at several locations throughout the province of Alberta in Western Canada. AMEC reports under IFRS as a publicly traded company. AMEC reported the following financial results (all pre-tax amounts) for the years 20X6 through 20X9: Alberta Mining and Export Corporation: Statement of Profit and Loss (summarized) Revenues 20X6 $120,000 Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income (82,000) (10,500) 20X7 $134,000 (94,000) (10,500) 20X8 $154,000 20X9 (97,000) (10,500) $174,000 (130,000) (10,500) $ 27,500 $ 29,500 $ 46,500 $ 33,500 Alberta Mining and Export Corporation: Statement of Financial Position (partial) 20X6 20X7 Machine (four-year life, no residual value), at cost Less: Accumulated depreciation $ 20X8 42,000 $ 42,000 42,000 $ (10,500) (20,500) (30,500) 20X9 42,000 (42,000) $ 31,500 $ 21,500 $ 11,500 $ AMEC has a tax rate of 40% for each of the relevant years. AMEC claimed the following amounts as CCA on its income tax filings: . 20X6: $18,000 .20X7: $14,000 • 20X8: $6,000 • 20X9: $4,000. Note: AMEC had no deferred income tax balances at 1 January 20X6. Required: For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also net income. (Negative amounts and deductible amounts should be indicated by a minus sign.) Deferred income tax balance Net income 20X6 20X7 20X8 20X9

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 6RE: Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings,...
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The Alberta Mining and Export Corporation (AMEC) has operations at several locations throughout the province of Alberta in Western Canada. AMEC reports under IFRS as a publicly traded company. AMEC reported the following financial results (all pre-tax amounts) for the years 20X6 through 20X9: Alberta Mining and Export Corporation: Statement of Profit and Loss (summarized) Revenues 20X6 $120,000 Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income (82,000) (10,500) 20X7 $134,000 (94,000) (10,500) $ 27,500 $ 29,500 $ 46,500 20X8 $154,000 (97,000) (10,500) 20X9 $174,000 (130,000) (10,500) $ 33,500 Alberta Mining and Export Corporation: Statement of Financial Position (partial) 20X6 20X7 Machine (four-year life, no residual value), at cost Less: Accumulated depreciation $ 20X8 42,000 $ 42,000 42,000 $ (10,500) (20,500) (30,500) 20X9 42,000 (42,000) $ 31,500 $ 21,500 $ 11,500 $ AMEC has a tax rate of 40% for each of the relevant years. AMEC claimed the following amounts as CCA on its income tax filings: . 20X6: $18,000 • 20X7: $14,000 • 20X8: $6,000 • 20X9: $4,000. Note: AMEC had no deferred income tax balances at 1 January 20X6. Required: For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also net income. (Negative amounts and deductible amounts should be indicated by a minus sign.) Deferred income tax balance Net income 20X6 20X7 20X8 20X9
Transcribed Image Text:The Alberta Mining and Export Corporation (AMEC) has operations at several locations throughout the province of Alberta in Western Canada. AMEC reports under IFRS as a publicly traded company. AMEC reported the following financial results (all pre-tax amounts) for the years 20X6 through 20X9: Alberta Mining and Export Corporation: Statement of Profit and Loss (summarized) Revenues 20X6 $120,000 Expenses other than depreciation Depreciation expense (straight-line) Pre-tax accounting income (82,000) (10,500) 20X7 $134,000 (94,000) (10,500) $ 27,500 $ 29,500 $ 46,500 20X8 $154,000 (97,000) (10,500) 20X9 $174,000 (130,000) (10,500) $ 33,500 Alberta Mining and Export Corporation: Statement of Financial Position (partial) 20X6 20X7 Machine (four-year life, no residual value), at cost Less: Accumulated depreciation $ 20X8 42,000 $ 42,000 42,000 $ (10,500) (20,500) (30,500) 20X9 42,000 (42,000) $ 31,500 $ 21,500 $ 11,500 $ AMEC has a tax rate of 40% for each of the relevant years. AMEC claimed the following amounts as CCA on its income tax filings: . 20X6: $18,000 • 20X7: $14,000 • 20X8: $6,000 • 20X9: $4,000. Note: AMEC had no deferred income tax balances at 1 January 20X6. Required: For each year, calculate the deferred income tax balance on the statement of financial position at the end of the year, and also net income. (Negative amounts and deductible amounts should be indicated by a minus sign.) Deferred income tax balance Net income 20X6 20X7 20X8 20X9
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