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Practice final BBUS3211_SW2_PE_10JUL12

The currently enacted income tax rate and for the

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Unformatted text preview: 012 to June 30, 2013). Lilliput reported the entire amount on its tax return. This resulted in a $180,000 difference between book and taxable incomes. 4. Lilliput sold $150,000 of bonds issued by the Government of Canada at a gain of $18,000, which was included as other income in its income statement. A taxable capital gain of $9,000 was reported for tax purposes. 5. In 2012, Lilliput insured the lives of its chief executives. The premiums paid were $12,000 and this amount was shown as an expense on the income statement. However, this amount was not deductible for tax purposes. The company is the beneficiary. Lilliput is a publicly accountable enterprise adhering to IFRS. Their 2012 income statement showed “Income before income taxes” of $900,000. The currently enacted income tax rate (and for the foreseeable future) is 40%. Except for those items mentioned above, there are no other differences between book and taxable incomes. TRU Open Learning BBUS 3211 • PRACTICE EXAMINATION 10 of 13 Required: a. Calculate the income tax payable for 2012. b. Prepare a schedule of future taxable/deductible amounts at the end of 2012. c. Prepare a schedule of the deferred (future) income tax...
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