P18-3
Eloisa corporation applies IFRS. Information about Eloisacorporation income before income tax of 633,000 for its year endedDecember 31 2017 includes:
- CCA reported on the 2017 tax return exceeded depreciationreported on the income statement by 100,000$. This difference plusthe 150,000 accumulated taxable temporary differences at jan 1 2017is expected to reverse in equal amounts over the 4 year period from2018-2021.
- Dividends received from taxable Canadian corporation were15,000$.
- Rent collected in advance and included in taxable income as atDecember 31 2016 totalled 60,000$ for a 3 year period. OF THISAMUNT, 40,000$ was reported as unearned for book purpose atDecember 31 2017. Eloisa reports unearned revenue as a currentliability if it will be recognized in income within 12 months fromthe balance sheet date. Eloisa paid 2,880$ interest penalty forlate income tax instalments. The interest penalty is not deductiblefor income tax purpose at any time.
- Equipment was disposed during the year for 90,000$. Theequipment had a cost of 105,00$ and accumulated depreciation to therate of disposal of 37,000$. The total proceeds on the sale ofthese assets reduced the CCA class, in other words no gain or lossreported.
- Eloisa recognized a 75,000$ loss on impairment of a long terminvestment whose value was considered impaired. He income tax actpermits the loss to be deducted only when the investment is soldand the loss is actually realize. The investment was accounted forat amortized cost.
- The tax rates are 30% for 2017 and 25% for 2018 and subsequentyears. These rates have been enacted and known for the past 2years.
A) calculate the balance in the deferred tax asset or deferredtax liability account at December 31 2016
