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Prior to 2019, the accounting income and taxable income for Blossom Corporation were the same....

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Accounting

Prior to 2019, the accounting income and taxable income for Blossom Corporation were the same. On January 1, 2019, the company purchased equipment at a cost of $540,000. For accounting purposes, the equipment was to be depreciated over 9 years using the straight-line method. For income tax purposes, the equipment was subject to a CCA rate of 20% (half-year rule applies for 2019). Blossoms income before tax for accounting purposes for 2020 was $1,865,000. The company was subject to a 25% income tax rate for all applicable years and anticipated profitable years for the foreseeable future. Blossom Corporation follows IFRS.

Calculate taxable income and taxes payable for 2020.

Taxable income, 2020 $
Taxes payable, 2020 $

Prepare the journal entries to record 2020 income taxes (current and deferred). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

(To record current income taxes)

(Record the net change from 2019 to 2020.)

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