During 2016 magneto magnets inc income statement

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Question 4During 2016, Magneto Magnets Inc. income statement reported income of $300,000 before tax.The company’s income tax return filed with the Canada Revenue Agency showed taxable income of $250,000. During 2016 Magneto Magnets was subject to an income tax rate of 25%. The company uses ASPE.Journalize Magneto Magnets income taxes for 2016.Income tax expenses = income before income tax x income tax rate= $300,000 x25% = $75,000Income tax payable = Taxable income x income tax rate = $250,000 x 25% = $62,500
How much Future Income Tax Liability did Magneto Magnets report on its balance sheet at December 31, 2016?
Question 5Delicious Deserts Inc. reported the following statement of changes in shareholders’ equity for the year ended June 30, 2016. The company was founded in 2011 and issued 455 million common shares. There had been no further share transactions until 2016. Delicious Deserts Inc.Statement of Changes in Shareholders’ EquityFor the Year Ended June 30, 2016(in millions)Common SharesRetained EarningsTotal

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