The following information relates to the accounting income for Ontario Uranium Enterprises (QUE)for the current year ended December 31.
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.
  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.
  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