Siwash Rock Limited (SRL), a December 31 year-end publically traded…

Question Answered step-by-step Siwash Rock Limited (SRL), a December 31 year-end publically traded… Siwash Rock Limited (SRL), a December 31 year-end publically traded company, reported income from continuing operations before taxes of $190,000 and pre-tax OCI of $60,000 in 2020. The OCI was entirely attributable to investment portfolio adjustments applied under the FV-OCI model. SRL’s statutory tax rate for 2020 is 35% and this statutory tax rate decreases to 34% for all subsequent years (after 2020).  At the end of 2019, selected amounts from the general ledger reported: ? – net book value of depreciable assets of $950,000, ? – Undepreciated Capital Cost of $850,000 ? – a deferred tax balance arising from capital assets of $33,000 ? – Unearned revenue for customer advances: $100,000 ? – SRL had an available loss carry forward at the end of 2019 of $300,000 for which the full available tax benefit had been recognized at that time. For 2020: ? – dividends received from taxable Canadian corporations amounted to $5,000 ?- meals and entertainment expenses totaled $40,000 ? – CCA allowance claimed was $63,000 and related depreciation expense was $50,000. There were no asset additions or disposals this year. ? – The company recognized $60,000 from customer advances as the work was completed ? – SRL applies all loss carry-forward available to reduce current year’s taxable income. Required #1: Prepare, in good form, all applicable tax entries for 2020. Show all supporting calculations.  Current tax analysis:   Image transcription textDeferred tax analysis: Item GAAP Tax Temp. Ending Begin Adjmt Balance ‘Balance’ Diff DTA/DTL DTA/DTL31/12/20 31/12/19 FT/FD Tax entries:… Show more  Accounting Business Financial Accounting ACCOUNTING BUS 450 Share QuestionEmailCopy link Comments (0)