While the combined federal and provincial rate for other abi

b) A decommissioning obligation

c) An interest expense

b) An obligating event occurs.

c) An obligating event has been budgeted for.

b) An after-tax discount rate.

c) A pre-tax discount rate.

b) The interest costs for the year are added to the cost of the related asset.

c) The provision is recalculated using the current required discount rate, and the adjustment impacts both the provision and the related asset.

b) Decommissioning costs of $55,000 should be added to the cost of the service station asset and an equal amount for the decommissioning provision should be recorded as a liability in the current year.

c) Decommissioning costs should be recorded as an asset and an equal decommissioning provision should be recorded as a liability only when an estimate of the fair value of the liability is known.

b) The current taxes after deducting instalments paid

c) Taxable temporary differences

b) $7,600 future income tax expense

c) $7,600 recovery of future income taxes

b) An increase to income tax expense of $7,000

c) A decrease to income tax expense of $7,000

b) $6,200 expense

c) $4,800 recovery

b) Equity method or cost

c) Equity method, cost, or consolidation

• RI paid $100,000 in dividends.

• RI reported net income of $500,000, which included $20,000 (in profits) that resulted from sales of inventory to BI.

d) $250,000

Question 12

d) Unrealized profit in inventory

Question 13

b) $79,550

c) $80,000

• Extec estimated and deducted $7,500 in warranty costs during the year. Actual warranty costs paid for providing warranties during the year were $4,600.

• Extec expensed $3,800 in charitable donations during the year.

d) $467,300

Question 15

d) A $50,000 contribution to the company-sponsored defined contribution pension plan (equal to the pension expense reported for the year).

Question 16

d) Future recorded $8,900 of premium amortization on the company’s bonds payable.

Question 17

d) Capital gain of $421,997

Question 18

d) $30,640

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c) $3,000 recapture

d) Capital cost allowance (CCA) of $600

c) $8,800

d) $9,075

a) $460,200

b) $510,200

What is the correct amount of active business income (ABI) to be used as one of the lesser of amounts for determining the small business deduction for Parthenon for the year?

a) $465,700

Dunitall Inc. is a Canadian-controlled private corporation with a December 31 year end. The following amounts have been correctly determined for the current year for Dunitall:

The combined federal and provincial corporate income tax rate on income eligible for the small business deduction is 15%, while the combined federal and provincial rate for other ABI is 29%, incorporating the general rate reduction (GRR). The GRR for 2016 is 13%, and the additional refundable tax (ART) rate is 10 ²/₃%.

What is the correct amount of income tax legally payable for Dunitall for the current year?

Question 24

Which of the following statements is true?

Question 25

Which of the following statements is FALSE?