Questions from Intermediate Accounting

Q: The 2017 financial statements (for the year ended December 30,

The 2017 financial statements (for the year ended December 30, 2017) and 10-year financial review (use the 2016 annual report) of Canadian Tire Corporation, Limited can be found at www.sedar.com or on...

Q: The following information relates to Shirley Corporation's transactions during 2020, its

The following information relates to Shirley Corporation's transactions during 2020, its first year of operations. 1. Income before income tax on the income statement for 2020 was $64,000. 2. Income...

Q: Carly Inc. reported the following accounting income (loss) and

Carly Inc. reported the following accounting income (loss) and related tax rates during the years 2015 to 2021: Accounting income (loss) and taxable income (loss) were the same for all years since Ca...

Q: Chen Corporation reported income before income tax for the year ended December

Chen Corporation reported income before income tax for the year ended December 31, 2020, of $1,645,000. In preparing the 2020 financial statements, the accountant discovered an error that was made in...

Q: Aaron Engines Ltd., a private business following ASPE, operates small

Aaron Engines Ltd., a private business following ASPE, operates small engine repair outlets and is a tenant in several of Tran Holdings Inc.'s strip shopping malls. Aaron signed several lease renewals...

Q: On December 31, 2019, Haley Inc. has taxable temporary

On December 31, 2019, Haley Inc. has taxable temporary differences of $2.2 million and a deferred tax liability of $616,000. These temporary differences are due to Haley having claimed CCA in excess o...

Q: At December 31, 2019, Wright Corporation had a temporary difference

At December 31, 2019, Wright Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $30,000 on its balance sheet. At December 31, 2020, Wright has fi...

Q: The accounting income of Grace Corporation and its taxable income for the

The accounting income of Grace Corporation and its taxable income for the years 2020 to 2023 are as follows: The change in the tax rate from 25% to 30% was not enacted until early in 2021. Accounting...

Q: The following information applies to Edward Corporation, which reports under IFRS

The following information applies to Edward Corporation, which reports under IFRS. 1. Prior to 2019, taxable income and accounting income were identical. 2. Accounting income was $1.7 million in 201...

Q: The accounting records of Steven Corp., a real estate developer,

The accounting records of Steven Corp., a real estate developer, indicated income before income tax of $850,000 for its year ended December 31, 2020, and of $525,000 for the year ended December 31, 20...