The following information relates to the accounting income for Ontario Uranium Enterprises (QUE)for the current year ended December 31.
$\begin{array}{ll}
\text { Income before taxes } & \$ 850,000 \\
\text { Membership fees }- \text { non deductible for tax } & 20,000 \\
\text { Depreciation and depletion expense } & 380,000 \\
\text { CCA } & 470,000 \\
\text { Loss on disposal of equipment (see additional info below) } & 75,000 \\
\text { Tax rate } & 30 \%
\end{array}$ During the year,the company sold one of its machines with carrying value of $85,000 for proceeds of $10,000,resulting in an accounting loss of $75,000.This loss has been included in the pre-tax income figure of $850,000 shown above.For tax purposes,the proceeds from the disposal were removed from the undepreciated capital cost (VCC)of Class 8 assets.
The deferred income tax liability account on January 1 had a credit balance of $230,000.This balance is entirely related to property,plant,and equipment (PPE).
Requirement:
Prepare the journal entries to record income taxes for QUE.

Question

The following information relates to the accounting income for Ontario Uranium Enterprises (QUE)for the current year ended December 31.
 $\begin{array}{ll}
\text { Income before taxes } & \$ 850,000 \\
\text { Membership fees }- \text { non deductible for tax } & 20,000 \\
\text { Depreciation and depletion expense } & 380,000 \\
\text { CCA } & 470,000 \\
\text { Loss on disposal of equipment (see additional info below) } & 75,000 \\
\text { Tax rate } & 30 \%
\end{array}$ During the year,the company sold one of its machines with carrying value of $85,000 for proceeds of $10,000,resulting in an accounting loss of $75,000.This loss has been included in the pre-tax income figure of $850,000 shown above.For tax purposes,the proceeds from the disposal were removed from the undepreciated capital cost (VCC)of Class 8 assets.
The deferred income tax liability account on January 1 had a credit balance of $230,000.This balance is entirely related to property,plant,and equipment (PPE).
Requirement:
Prepare the journal entries to record income taxes for QUE.

Quizplus · Accepted Answer

The Answer of The following information relates to the accounting income for Ontario Uranium Enterprises (QUE)for the current year ended December 31.
 $\begin{array}{ll}
\text { Income before taxes } & \$ 850,000 \\
\text { Membership fees }- \text { non deductible for tax } & 20,000 \\
\text { Depreciation and depletion expense } & 380,000 \\
\text { CCA } & 470,000 \\
\text { Loss on disposal of equipment (see additional info below) } & 75,000 \\
\text { Tax rate } & 30 \%
\end{array}$ During the year,the company sold one of its machines with carrying value of $85,000 for proceeds of $10,000,resulting in an accounting loss of $75,000.This loss has been included in the pre-tax income figure of $850,000 shown above.For tax purposes,the proceeds from the disposal were removed from the undepreciated capital cost (VCC)of Class 8 assets.
The deferred income tax liability account on January 1 had a credit balance of $230,000.This balance is entirely related to property,plant,and equipment (PPE).
Requirement:
Prepare the journal entries to record income taxes for QUE.

The Following Information Relates to the Accounting Income for Ontario