4.99 See Answer

Question: Strong House Inc. had the following condensed

Strong House Inc. had the following condensed statement of financial position at December 31, 2019:
Strong House Inc. had the following condensed statement of financial position at December 31, 2019:

Strong House Inc. follows IFRS and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows. 
During 2020, the following occurred: 
1. Strong House Inc. sold part of its investment portfolio in bonds for $15,500, resulting in a gain of $500. 
2. Dividends totalling $19,000 were paid to shareholders. 
3. A parcel of land, to be used as a parking lot, was purchased for $5,500. 
4. Common shares were issued for cash totalling $20,000. 
5. Bonds payable of $10,000 were retired at par. 
6. Equipment was purchased through the issuance of $32,000 of bonds. 
7. Net income for 2020 was $42,000 after allowing for depreciation on Strong House Inc.'s plant assets of $13,550. The amount of interest paid during 2020 was $4,150 and the amount of income taxes paid was $19,500. 
8. Both current assets (other than cash) and current liabilities remained at the same amount. 

Instructions 
a. Prepare a statement of cash flows for 2020 using the indirect method. 
b. Draft a one-page letter to Mr. Gerald Brauer, president of Strong House Inc., in which you briefly explain the changes within each major cash flow category. Refer to the statement of cash flows whenever necessary. 
c. Prepare a condensed statement of financial position at December 31, 2020, for Strong House Inc. 
d. Comment briefly about why the statement of cash flows used to be called a statement of changes in financial position. What additional relevant disclosure in financial reporting has been achieved with the change from the former statement of changes in financial position to the current statement of cash flows?


Strong House Inc. had the following condensed statement of financial position at December 31, 2019:

Strong House Inc. follows IFRS and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows. 
During 2020, the following occurred: 
1. Strong House Inc. sold part of its investment portfolio in bonds for $15,500, resulting in a gain of $500. 
2. Dividends totalling $19,000 were paid to shareholders. 
3. A parcel of land, to be used as a parking lot, was purchased for $5,500. 
4. Common shares were issued for cash totalling $20,000. 
5. Bonds payable of $10,000 were retired at par. 
6. Equipment was purchased through the issuance of $32,000 of bonds. 
7. Net income for 2020 was $42,000 after allowing for depreciation on Strong House Inc.'s plant assets of $13,550. The amount of interest paid during 2020 was $4,150 and the amount of income taxes paid was $19,500. 
8. Both current assets (other than cash) and current liabilities remained at the same amount. 

Instructions 
a. Prepare a statement of cash flows for 2020 using the indirect method. 
b. Draft a one-page letter to Mr. Gerald Brauer, president of Strong House Inc., in which you briefly explain the changes within each major cash flow category. Refer to the statement of cash flows whenever necessary. 
c. Prepare a condensed statement of financial position at December 31, 2020, for Strong House Inc. 
d. Comment briefly about why the statement of cash flows used to be called a statement of changes in financial position. What additional relevant disclosure in financial reporting has been achieved with the change from the former statement of changes in financial position to the current statement of cash flows?

Strong House Inc. follows IFRS and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows. During 2020, the following occurred: 1. Strong House Inc. sold part of its investment portfolio in bonds for $15,500, resulting in a gain of $500. 2. Dividends totalling $19,000 were paid to shareholders. 3. A parcel of land, to be used as a parking lot, was purchased for $5,500. 4. Common shares were issued for cash totalling $20,000. 5. Bonds payable of $10,000 were retired at par. 6. Equipment was purchased through the issuance of $32,000 of bonds. 7. Net income for 2020 was $42,000 after allowing for depreciation on Strong House Inc.'s plant assets of $13,550. The amount of interest paid during 2020 was $4,150 and the amount of income taxes paid was $19,500. 8. Both current assets (other than cash) and current liabilities remained at the same amount. Instructions a. Prepare a statement of cash flows for 2020 using the indirect method. b. Draft a one-page letter to Mr. Gerald Brauer, president of Strong House Inc., in which you briefly explain the changes within each major cash flow category. Refer to the statement of cash flows whenever necessary. c. Prepare a condensed statement of financial position at December 31, 2020, for Strong House Inc. d. Comment briefly about why the statement of cash flows used to be called a statement of changes in financial position. What additional relevant disclosure in financial reporting has been achieved with the change from the former statement of changes in financial position to the current statement of cash flows?





Transcribed Image Text:

Strong House Inc. Statement of Financial Position December 31, 2019 $ 10,000 Cash Current liabilities $ 14,500 Current assets (non-cash) Long-term notes payable Bonds payable 34,000 30,000 Bond investment at amortized cost 40,000 32,000 Plant assets (net) 57.500 Common shares 80,000 Land 38,500 Retained earnings 23,500 $180,000 $180,000


> On May 1, 2020, Green Machine Inc. entered into a contract to deliver one of its specialty mowers to Schroeter Landscaping Co. The contract requires Schroeter to pay the contract price of $3,200 in advance on May 15, 2020. Schroeter pays Green Machine on

> Crude Oil Limited purchased an oil tanker depot on July 2, 2020 at a cost of $600,000 and expects to operate the depot for 10 years. After the 10 years, Crude Oil is legally required to dismantle the depot and remove the underground storage tanks. It is

> On January 1, 2020, Offshore Corporation erected a drilling platform at a cost of $5,460,000. Offshore is legally required to dismantle and remove the platform at the end of its six-year useful life, at an estimated cost of $950,000. Offshore estimates t

> The incomplete income statement of Justin Corp. follows. The employee profit-sharing plan requires that 20% of all profits remaining after the deduction of the bonus and income tax be distributed to the employees by the first day of the fourth month fol

> Goldwing Corporation offers enriched parental benefits to its staff. While the government provides compensation based on Employment Insurance legislation for a period of 12 months, Goldwing increases the amounts received and extends the period of compens

> As the new accountant for Carly's Pet Express Inc., a line of pet boutiques, you are developing the financial statement disclosures for the 2020 financial statement note on income taxes. The company uses ASPE, and has selected the taxes payable method. T

> Refer to the information in BE18.15 for Zdon Inc. Assume that the company follows the taxes payable method of accounting for income taxes under ASPE. During the year, Zdon Inc. made tax instalment payments of $42,000. Instructions a. Calculate the tax

> AltaGas Ltd. capitalizes on the supply and demand dynamic for natural gas and power by owning and operating assets in gas, power, and utilities in places that provide a strategic competitive advantage. Instructions Access the financial statements for

> Refer to the information in BE18.11 for Henry Limited. Assume that the company reports under ASPE and that the taxes payable method of accounting is used for income tax. Instructions a. Prepare the journal entry(ies) to record income tax at December 3

> Geoff Corp.'s operations in 2020 had mixed results. One division, Vincenti Group, again failed to earn income at a rate that was high enough to justify its continued operation, and management therefore decided to close the division. Vincenti Group earned

> Darrell Corporation reports under IFRS. At December 31, 2020, the company had a net deferred tax liability of $402,000. An explanation of the items that make up this balance follows: Instructions a. Indicate how deferred tax should be presented on Darr

> Refer to the information provided about Roux Corp. in E18.28. Instructions a. Assuming that it is more likely than not that $25,000 of the deferred tax asset will not be realized, prepare the journal entries to record income taxes for 2020. Roux uses

> Roux Corp. had a Deferred Tax Asset account with a balance of $81,000 at the end of 2019 due to a single temporary difference of $270,000 related to warranty liability accruals. At the end of 2020, this same temporary difference has increased to $300,000

> Refer to the information for Riley Inc. in E18.26. Instructions a. Assume that Riley Inc. uses a valuation allowance to account for deferred tax assets, and also that it is more likely than not that 25% of the carryforward benefits will not be realize

> Riley Inc. reports the following pre-tax incomes (losses) for both financial reporting purposes and tax purposes: The tax rates listed were all enacted by the beginning of 2018. Riley reports under the ASPE future/deferred income taxes method. Instruc

> Peter M. Dell Co. purchased equipment for $510,000, which was estimated to have a useful life of 10 years with a residual value of $10,000 at the end of that time. Depreciation has been entered for seven years on a straight-line basis. In 2020, it is det

> Rodriguez Corp. changed from the straight-line method of depreciation on its plant assets acquired in early 2018 to the double-declining-balance method in 2020 (before finalizing its 2020 financial statements) because of a change in the pattern of benefi

> The comparative SFP for Cosky Corporation follows: Additional information: 1. Dividends of $15,000 were declared and paid in 2020. 2. There were no unrealized gains or losses on the FV-NI investments. Instructions Based on the information, prepare

> Access the financial statements of Bombardier Inc. for the years ended December 31, 2017 and 2016, from the company's website or SEDAR (www.sedar.com). Instructions Changes in non-cash working capital items can have a significant impact on operating c

> The following transactions took place during the year 2020 for Mia Inc. 1. Convertible bonds payable with a carrying amount of $300,000 along with conversion rights of $9,000 were exchanged for common shares. 2. The net income for the year was $410,000

> Shen Limited reported net income of $32,000 for its latest year ended March 31, 2020. Instructions For each of the five different situations involving the SFP accounts that follow, calculate the cash flow from operating activities using the indirect m

> The following are transactions of Albert Sing, an interior design consultant, for the month of September 2020. At September 30, the following information is available. 1. The equipment has a useful life of five years and an estimated residual value of

> Huang Corp. uses the direct method to prepare its statement of cash flows and follows IFRS. Huang's trial balances at December 31, 2020 and 2019, were as follows: Huang Corp. uses the direct method to prepare its statement of cash flows and follows IFRS.

> Data for Malouin Corp. are presented in E22.12. Instructions Prepare the operating activities section of the statement of cash flows using the indirect method. From E22.12: Malouin Corp.'s income statement for the year ended December 31, 2020, had th

> Tobita Limited, which follows IFRS, has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. Condensed financial data for 2020 and 2019 follow (in thousands): Additional information: Durin

> Information from the statement of financial position and statement of income is given below for North Road Inc., a company following IFRS, for the year ended December 31. North Road has adopted the policy of classifying interest paid as operating activit

> Robbins Ltd. is a wholesale distributor of professional equipment and supplies. The company's sales have averaged about $900,000 annually for the three-year period 2018 to 2020. The firm's total assets at the end of 2017 amounted to $850,000. The preside

> The following information (in $000) has been obtained from Patinka Limited's financial statements for the fiscal years ended December 31. There were no preferred shares issued by Patinka nor were there any dividends paid in any of the three years. Ins

> Tarzwell Limited is preparing some analysis of past financial performance and positions to include in the management discussion and analysis (MD&A) portion of the annual report to shareholders. You have suggested that it would be useful for users of

> Hudson's Bay Company's financial statements for its year ended February 3, 2018 (fiscal 2017) can be found at the end of this volume or on the company website. HBC is a global retailer with investments in real estate joint ventures. Instructions Revie

> The condensed statement of changes in financial position and detailed income statement information (in $000) for Tran Consulting Ltd. follow. Tran contracts professionals in the electronic data management field and provides services to clients around the

> The first audit of the books of Gomez Limited was recently carried out for the year ended December 31, 2020. Gomez follows IFRS. In examining the books, the auditor found that certain items had been overlooked or might have been incorrectly handled in th

> Pace Instrument Corp., a small company that follows ASPE, began operations on January 1, 2017, and uses a periodic inventory system. The following net income amounts were calculated for Pace under three different inventory cost formulas: Instructions A

> Wagner Inc. is a large Canadian public company that uses IFRS. A lease for a fleet of trucks has been capitalized and the lease amortization schedule for the first three lease payments appears below. The trucks have an economic life of eight years. The l

> The following selected account balances are taken from the financial statements of Mandrich Inc. at its calendar year end prepared using IFRS: At December 31, 2020, the following information is available: 1. Mandrich Inc. repurchased 2,000 common share

> Jason Corporation completed, its board of directors authorized, and it issued its financial statements following IFRS for the year ended December 31, 2020, on March 10, 2021. The following events took place in early 2021. 1. On January 30, 19,000 common

> Sunlight Equipment Manufacturers (SEM) makes barbecue equipment. The company has historically been very profitable; however, in the last year and a half, things have taken a turn for the worse due to higher consumer interest rates and a slowdown in the e

> Wind and Solar Inc. (WSI) is in the business of providing electricity. The company started up in 2019. Currently, it is owned by Winifred Wind and Winston Chang. Both Winston and Winifred own 50% of the WSI common shares. Under the terms of the sharehold

> Big Bath Emporium (BBE), a private company based in Toronto, is the city's largest manufacturer and vendor of bathtubs, showers, and sinks. The company sells products direct to consumers, and also sells wholesale to other retailers. BBE is owned by Bob B

> RTL is a family-owned and operated business that prints flyers and banners. It has been in operation for over 20 years and is being passed on to the next generation. Profits from the past two years have been significantly declining. This is a direct resu

> Access the financial statements of WestJet Airlines Limited for its year ended December 31, 2017, from SEDAR (www.sedar.com) or the company's website. Instructions Review the financial statements and the company's note disclosures related to new accounti

> J. J. Kersee Corporation, a Canadian publicly traded company, is currently preparing the interim financial data that it will issue to its shareholders and the securities commission at the end of the first quarter of its December 31, 2020 fiscal year. Ker

> Frangipani Ltd. (FL) is a new company that has just started up in January 2020. The company is the brainchild of Frank Frangi, who is working on developing a new process for a solar-powered car. To date, most of the year has been taken up with setting up

> Cauchy Inc. (CI) has just had a planning meeting with its auditors. There were several concerns raised during the meeting regarding the draft financial statements for the December 31, 2020 year end. CI is a public company whose shares are listed on the T

> Verez Limited owns 90% of Consior Inc. During 2020, Verez acquired a machine from Consior in exchange for its own used machine. Both companies are in the tool-making business. The agreed exchange amount is $1,000, although the transaction is nonmonetary.

> Maffin Corp. owns 75% of Grey Inc. Both companies are in the mining industry. During 2020, Maffin Corp. purchased a building from Grey Inc. for $1,000. The building's original cost is $25,000 and its carrying amount in Grey Inc.'s financial statements is

> The following selected account balances were taken from the financial statements of Blumberg Inc. concerning its long-term investment in shares of Black Inc. over which it has had significant influence since 2017: At December 31, 2020, the following inf

> Angus Farms Ltd., which follows ASPE, had the following transactions during the fiscal year ended December 31, 2020. 1. On May 1, a used tractor was sold at auction. The information concerning this transaction included: 2. After the seeding season, on

> The following are selected statement of financial position accounts of Pavicevic Ltd. at December 31, 2019 and 2020, and the increases or decreases in each account from 2019 to 2020. Also presented is the selected income statement and other information f

> Wong Textiles Ltd. entered into a lease obligation during 2020 to acquire a cutting machine. The amount recorded to the Right-of-Use Asset account and the corresponding Lease Liability account was $85,000 at the date of signing the lease. Wong made the f

> In 2020, Abbotsford Inc. issued 1,000 common shares for land with a fair market value of $149,000. a. Prepare Abbotsford's journal entry to record the transaction. b. Indicate the effect that the transaction has on cash. c. Indicate how the transactio

> Chorus Aviation Inc. is a Canadian aviation holding company that provides, through Jazz Aviation LP, a “significant part of Air Canada’s domestic and transborder network.” Chorus indicates in Note 1 to its financial statements that it is both economicall

> Watson Corporation, which uses IFRS, is using the indirect method to prepare its 2020 statement of cash flows and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows. A list

> Tang Corporation, which follows IFRS and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows, had the following activities in 2020. 1. Paid $870,000 of accounts payable. 2.

> Maddox Corporation had the following activities in 2020. 1. Sold land for $180,000. 2. Purchased an FV-NI investment in common shares for $15,000. 3. Purchased inventory for $845,000 with cash. 4. Received $73,000 cash from bank borrowings. 5. Recei

> Mullins Corp. reported the following items on its June 30, 2020 trial balance and on its comparative trial balance one year earlier: Determine the June 30, 2020 cash and cash equivalents amount for the 2020 statement of cash flows, and calculate the cha

> Maleki Enterprises Ltd. follows ASPE and states in its financial statement notes: “The company and its subsidiaries have long-term leases expiring on various dates after December 31, 2020. Amounts payable under such commitments, without reduction for rel

> Lagace Ltd. entered into a lease on June 1, 2020. The lease term is six years and requires annual rental payments of $30,000 at the beginning of each year. Lagace’s incremental borrowing rate is 8% and the rate implicit in the lease is 9%. a. Calculate

> Sports International had total debt of $500,000 and $750,000 as at December 31, 2020, and December 31, 2019, respectively, of which $100,000 and $150,000 was current. In addition, the company had total assets of $900,000 and $700,000 as at December 31, 2

> Using the information from BE18.3, prepare Nilson's journal entry to record 2020 income tax. Assume a tax rate of 25% and that Nilson uses the taxes payable method of accounting for income taxes under ASPE. From BE18.3: Nilson Inc. had accounting income

> Use the information provided in BE20.22 about Lessee Corp. Assume that title to the property will not be transferred to Lessee by the end of the lease term and that there is also no bargain purchase option, but that the lease does meet other criteria to

> Lessee Corp. agreed to lease property from Lessor Corp. effective January 1, 2020, for an annual payment of $30,877, beginning January 1, 2020. The property is made up of land with a fair value of $120,000 and a two-storey office building with a fair val

> Access the financial statements of Thomson Reuters Corporation for its year ended December 31, 2017 from the company's website at www.thomsonreuters.ca. The company's annual report states, in its business overview, that Thomson Reuters is the “world's le

> As at December 31, 2020, Bajac Inc. has the following balances: cash in bank, $108,000; investment in preferred shares (retractable, purchased by Bajac within 90 days of maturity date), $120,000; investment in common shares (to be sold within 30 days), $

> Yang Inc. reports under IFRS and has adopted the policy of classifying interest received as an investing activity. During 2020, Yang lent $30,000 to a key supplier in exchange for a two-year interest-bearing promissory note. Interest revenue earned on th

> Noland Corporation decided at the beginning of 2020 to change from the declining-balance method of depreciating its capital assets to the straight-line method because the straight-line method better represents the pattern of benefits provided by the capi

> At January 1, 2020, Baker Corp. reported retained earnings of $2 million. In 2020, Baker discovered that 2019 depreciation expense was understated in error by $500,000. In 2020, net income was $800,000 and dividends declared were $195,000. The tax rate i

> In 2020, Dody Corporation discovered that equipment purchased on January 1, 2018, for $145,000 was expensed in error at that time. The equipment should have been depreciated over five years, with no residual value. The tax rate is 30%. Prepare Dody's 202

> Refer to the information for Maya Corp. in BE19.4, and provide a continuity schedule for the plan assets for the year. Is the plan in a surplus or a deficit position at the end of the year? From BE19.4: Maya Corp. reports the following information (in h

> Talbert Inc., which uses a periodic system, changed from the weighted average cost formula to the FIFO cost formula in 2020. The increase in the prior year's income before tax as a result of this change is $228,000. The tax rate is 30%. Prepare Talbert's

> Maya Corp. reports the following information (in hundreds of thousands of dollars) to you about its defined benefit pension plan for 2020: Provide a continuity schedule for the DBO for the year. Maya follows IFRS. $ 14 Actual return on plan assets B

> At the beginning of 2020, Armstead Corporation discovered that depreciation expense in the years prior to 2020 was incorrectly calculated and recorded. For the years before 2020, total depreciation expense of $165,000 was recorded, whereas correct total

> Turcotte Limited, a public company following IFRS 16, decided to upgrade the coffee machines in all of its office locations. Turcotte leased 50 machines from Coffee Tyme Ltd. on July 1, 2020. (To purchase the coffee machines instead would have cost Turco

> Refer to the specimen financial statements at the end of the book, which show excerpts from the 2017 year-end financial statements, including the accompanying notes, of Hudson's Bay Company. The full financial statements are available on SEDAR. In the no

> On January 1, 2020, Quong Corporation (the lessee) entered into a four-year, non-cancellable equipment lease contract with Zareiga Inc. (the lessor). The PV of the minimum lease payments required was $116,025. Also at lease inception, it was estimated th

> Indicate the effect—understated (U), overstated (O), or no effect (NE)—that each of the following errors has on 2019 net income and 2020 net income: 2019 2020 Wages payable were not recorded at Dec. 31, 2019. Equip

> Paudel Limited has been in the retail business for many years and has reached its goal in securing a strong financial position. The board of directors decided that it is time to adopt a policy of paying quarterly dividends. No dividends had been declared

> Matusek Corporation has been experiencing a higher than expected number of warranty claims in the current year, due mainly to less than ideal product design. For this reason, the warranty expense percentage used was changed from 2% to 3% of sales. The wa

> BBF Inc. owns a broadcast licence it purchased for $100,000, which is renewable every 10 years if BBF complies with regulatory requirements and provides an acceptable level of service to its customers. The licence may be renewed indefinitely at little co

> Wong Limited is a start-up company and has suffered a loss in the current year. Although it is confident that its expansion investment will pay off in the future, it decided to not claim any capital cost allowance (CCA) on its assets when it filed its ta

> Bailey Corp. changed depreciation methods in 2020 from straight-line to double-declining balance because management gathered evidence that the assets were being used differently than previously thought. The assets involved were acquired early in 2017 for

> Quinlan Corporation purchased Equipment for $60,000 on January 1, 2018. It was depreciated based on a seven-year life and an $18,000 residual value. On January 1, 2020, Quinlan revised these estimates to a total useful life of four years and a residual v

> Use the information for McCormick Ltd. from BE20.8. Assume that at December 31, 2020, McCormick made an adjusting entry to accrue interest expense of $8,296 on the lease. Prepare McCormick’s May 1, 2021 journal entry to record the second lease payment of

> McCormick Ltd., a public company following IFRS 16, recorded a right-of-use asset and lease liability at $150,000 on May 1, 2020. The interest rate is 10%. McCormick made the first lease payment of $25,561 on May 1, 2020. The lease requires a total of ei

> Refer to the financial statements of Hudson's Bay Company for its fiscal year ended February 3, 2018 (53 weeks), which are reproduced at the end of Volume 2 of this text, and for its fiscal year ended January 28, 2017 (52 weeks), found at www.sedar.com o

> At December 31, 2020, Glover Corporation provided you with the following information: Determine the account and its balance that should be reported on Glover Corporation's December 31, 2020 balance sheet if it applies ASPE. How should the $990,000 be re

> Coa Corporation recently needed to find temporary inventory storage space when transitioning from an old factory to a newly built factory within the same city. Coa signed a 10-month lease on a warehouse requiring monthly payments in advance of $14,500.

> Nilson Inc. had accounting income of $156,000 in 2020. Included in the calculation of that amount is the CEO's life insurance expense of $5,000, which is not deductible for tax purposes. In addition, the undepreciated capital cost (UCC) for tax purposes

> Regina Corporation, which uses ASPE, manufactures replicators. On May 29, 2020, it leased to Barnes Limited a replicator that cost $265,000 to manufacture and usually sells for $410,000. The lease agreement covers the replicator’s five-year useful life a

> Use the information for Lai Corporation from BE20.14. Assume that, instead of costing Lai $175,000, the equipment was manufactured by Lai at a cost of $137,500 and the equipment’s regular selling price is $175,000. Prepare Lai Corporation’s January 1, 20

> Lai Corporation, which uses ASPE, leased equipment it had specifically purchased at a cost of $175,000 for Swander, the lessee. The term of the lease is six years, beginning January 1, 2020, with equal rental payments of $33,574 at the beginning of each

> Use the information for Merrill Corporation from BE20.11 and the information that you gathered while solving BE20.11 and BE20.12. Prepare a schedule contrasting the journal entries prepared using a guaranteed residual value with those using an unguarante

> Use the information for Merrill Corporation from BE20.11. Assume that a residual value of $17,000 is expected at the end of the lease, but that Merrill does not guarantee the residual value. Using 1. tables, 2. a financial calculator, or 3. Excel func

> Merrill Corporation, which uses ASPE, enters into a six-year lease of equipment on September 1, 2020, that requires six annual payments of $28,000 each, beginning September 1, 2020. In addition, Merrill guarantees the lessor a residual value of $17,000 a

> Refer to the data for Duster Corporation's defined benefit pension plan in BE19.9. Now assume that the company follows ASPE instead of IFRS. Determine the 2020 effect of the pension plan on pension expense and the company's shareholders' equity. From BE

> The accounting for operating leases has been a controversial issue. Many observers argue that firms that use operating leases are using significantly more assets and are more highly leveraged than their financial statements indicate. As a result, analyst

> Duster Corporation is a private company with a defined benefit pension plan. The following information is available for Duster Corporation for 2020: Assuming that Duster follows IFRS, determine the 2020 effect of the pension plan on pension expense and

> Jonquière Corporation provides the following information about its defined benefit pension plan (in hundreds of thousands of dollars) for 2020: At the end of the year, Jonquière revised the terms of its pension plan, which result

> Mazur Corp. follows IFRS and began operations in 2020 and reported accounting income of $275,000 for the year. Mazur's CCA exceeded its book depreciation by $40,000. Mazur's tax rate for 2020 and years thereafter is 30%. In its December 31, 2020 statemen

> Sonia Corporation has historically followed ASPE, but is considering a change to IFRS. It has temporary differences at December 31, 2020, that result in the following SFP future income tax accounts: Indicate how these balances will be presented in Sonia

4.99

See Answer