The accounting records of Whispering Winds Corp., a real estate developer, indicated income before income tax of $856,000 for its year ended December 31, 2020, and of $560,000 for the year ended December 31, 2021. The following data are also available. Determine the balance of any deferred tax asset or liability accounts at December 31, 2019, 2020, and 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Attempts: 0 of 2 used The parts of this question must be completed in order. This part will be available when you complete the part above. The parts of this question must be completed in order. This part will be available when you complete the part above. The parts of this question must be completed in order. This part will be available when you complete the part above. The parts of this question must be completed in order. This part will be available when you complete the part above. The parts of this question must be completed in order. This part will be available when you complete the part above.1. Whispering Winds Corp. pays an annual life insurance premium of $11,200 covering the top management team. The company is the named beneficiary. 2. The carrying amount of the company’s property, plant, and equipment at January 1, 2020 was $1,250,000, and the UCC at that date was $993,000. Whispering Winds recorded depreciation expense of $173,000 and $189,000 in 2020 and 2021, respectively. CCA for tax purposes was $185,000 and $164,500 for 2020 and 2021, respectively. There were no asset additions or disposals over the two-year period. 3. Whispering Winds deducted $211,000 as a restructuring charge in determining income for 2019. At December 31, 2019, an accrued liability of $198,500 remained outstanding relative to the restructuring, which was expected to be completed in the next fiscal year. This expense is deductible for tax purposes, but only as the actual costs are incurred and paid for. The actual restructuring of operations took place in 2020 and 2021, with the liability reduced to $66,000 at the end of 2020 and to $0 at the end of 2021. 4. In 2020, property held for development was sold and a profit of $63,000 was recognized in income. Because the sale was made with delayed payment terms, the profit is taxable only as Whispering Winds receives payments from the purchaser. A 10% down payment was received in 2020, with the remaining 90% expected in equal amounts over the following three years. 5. Non-taxable dividends of $3,250 in 2020 and of $3,570 in 2021 were received from taxable Canadian corporations. 6. In addition to the income before income tax identified above, Whispering Winds reported a before-tax gain on discontinued operations of $18,200 in 2020. 7. A 30% rate of tax has been in effect since 2018.
Whispering Winds Corp. follows IFRS.Part 1
2019 2020 2021 PP&E Restructuring Charges Profit on Property Sale eTextbook and Media
List of Accounts
Part 2
Part 3
Part 4
Part 5
Part 6
We need at least 9 more requests to produce the answer.
1 / 10 have requested this problem solution
The more requests, the faster the answer.
The accounting records of Whispering Winds Corp., a real estate developer, indicated income before income tax of $856,000 for its year ended December 31, 2020, and of $560,000 for the year ended December 31, 2021. The following data are also available. 1
The accounting records of Whispering Winds Corp., a real estate developer, indicated income before income tax of $856,000 for its year ended December 31, 2020, and of $560,000 for the year ended December 31, 2021. The following data are also available.1.Whispering Winds Corp. pays an annual life insurance premium of $11,200 covering the top management team. The company is the named beneficiary.2.The carrying amount of the company’s property, plant, and equipment at January 1, 2020 was $1,250,000, and the UCC at that date was $993,000. Whispering Winds recorded...
P18.6 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, 2021. The following data are also available.Steven Corp. pays an annual life insurance premium of $11,000 covering the top management team. The company is the named beneficiary.The carrying amount of the company's property, plant, and equipment at January 1, 2020, was $1,256,000, and the UCC at that...
Concord Ltd. began business on January 1, 2019. At December 31, 2019, it had a $56,550 balance in the Deferred Tax Liability account that pertains to property, plant, and equipment acquired on July 1, 2019 at a cost of $870,000. The property, plant, and equipment is being depreciated on a straight-line basis over six years for financial reporting purposes, and is a Class 8-20% asset for tax purposes. Concord’s income before income tax for 2020 was $65,000. Concord Ltd. follows IFRS.The following items caused the...
Concord Ltd. began business on January 1, 2019. At December 31, 2019, it had a $56,550 balance in the Deferred Tax Liability account that pertains to property, plant, and equipment acquired on July 1, 2019 at a cost of $870,000. The property, plant, and equipment is being depreciated on a straight-line basis over six years for financial reporting purposes, and is a Class 8-20% asset for tax purposes. Concord’s income before income tax for 2020 was $65,000. Concord Ltd. follows IFRS.The following items caused the...
Whispering Winds Corp.’s balance sheet at December 31, 2018, is presented below. Whispering Winds Corp. Balance Sheet December 31, 2018 Cash $32,000 Accounts payable $13,050 Inventory 30,500 Interest payable 2,525 Prepaid insurance 7,320 Bonds payable 50,500 Equipment 38,280 Common stock 23,825 Retained earnings 18,200 $108,100 $108,100 During 2019, the following transactions occurred. 1. Whispering Winds paid $2,525 interest on the bonds on January 1, 2019. 2. Whispering Winds purchased $243,900 of inventory on account. 3. Whispering Winds sold for $498,500...
Problem 6-03A a, bl-b2, c (Part Level Submission) (Video) Whispering Winds Corp. had a beginning inventory on January 1 of 143 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made. Mar. 15 July 20 380 units 238 units at at $23 $24 Sept. 4 Dec, 2 333 units 95 units at at $26 $29 950 units were sold. Whispering Winds Corp. uses a periodic inventory system. Determine the cost of...
Typical Corp. reported a deferred tax liability of $3,625,000 for the year ended December 31, 2020, when the tax rate was 25%. The deferred tax liability was related to a temporary difference of $14,500,000 caused by an installment sale in 2020. The temporary difference is expected to reverse in 2022 when the income deferred from taxation will become taxable. There are no other temporary differences. Assume a new tax law passed in 2021 and the tax rate, which will remain...
Problem 6-03A a, bl-b2, c (Part Level Submission) (Video) Whispering Winds Corp. had a beginning inventory on January 1 of 143 units of Product 4-18-15 at a cost of $20 per unit. During the year, the following purchases were made. Mar. 15 July 20 380 units 238 units at at $23 $24 Sept. 4 Dec. 2 333 units 95 units at at $26 $29 950 units were sold. Whispering Winds Corp. uses a periodic inventory system. (a) Your answer is...
Riverbed Corp. reported the following differences between SFP carrying amounts and tax bases at December 31, 2019: Carrying Amount Tax Base Depreciable assets $104,000 $70,200 Warranty liability (current liability) 18,500 0 Pension liability (long-term liability) 39,600 0 The differences between the carrying amounts and tax bases were expected to reverse as follows: 2020 2021 After 2021 Depreciable assets $17,000 $12,000 $4,800 Warranty liability 18,500 0 0 Accrued pension liability 12,000 11,000 16,600 Tax rates enacted at December 31, 2019 were...
Pina Colada Inc. reported the following accounting income (loss) and related tax rates during the years 2015 to 2021: Accounting TaxYear Income (Loss) Rate2015$70,00025%201625,00025%201764,00025%201876,00030%2019(200,000)35%202073,00030%202195,00025%Accounting income (loss) and taxable income (loss) were the same for all years since Pina Colada began business. The tax rates from 2018 to 2021 were enacted in 2018.Assume Pina Colada Inc. follows ASPE for all parts of this question, except when asked about the effect of reporting under IFRS in part (b).Part 1Prepare the journal entries to record income taxes for the years 2019 to...