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The Controller is asking you eight (8) questions regarding your calculation of current income taxes. Using your completed schedule, answer the Controller's multiple choice questions 1-8. (1). What is the amount of accounting income? A. $450,000 B. $475,000 C$550,000 D. $500,000 1 Answer: (2). The 2020 year non-deductible expenses of $8,000 are considered to be a: A Difference between federal and provincial taxes 8. Temporary difference C Difference between IFRS and ASPE D. Permanent difference #2 Answer: (3). What adjustment is needed to accounting income regarding the 2-year advertising service? A Add $37,500 to taxable income. B. Add-back $37,500 to accounting income. C. Add-back $75,000 to accounting income. D. Deduct So from accounting income as the service is completed in 2022. 13 Answer: (4). When adjusting accounting income to taxable income, depreciation expense and capital cost allowance require adjustments. What is the NET adjustment needed [2 marks)? A Deduct $60,000 8. Deduct $12,000 C Add-back $144,000 D. Add-back $12,000. 4 Answer: (5). What tax rate is used to calculate the current income tax expense for the year ended December 31, 20207 A 25% B. 15% C 30% D. 12.5% 5 Answer: (6). Assuming Patio Co. has a positive taxable income, what statement correctly explains the current Income tax presentation on the Statement of Financial Position at December 31, 2020? A Patio Co. would show a current asset called income tax receivable. 8. Patio Co. would show a non-current ability called income tax payable. CPatio Co. would show a current liability called income tax payable. The Controller is asking you eight (8) questions regarding your calculation of current income taxes. Using your completed schedule, answer the Controller's multiple choice questions 1-8. (1). What is the amount of accounting income? A. $450,000 B. $475,000 C$550,000 D. $500,000 1 Answer: (2). The 2020 year non-deductible expenses of $8,000 are considered to be a: A Difference between federal and provincial taxes 8. Temporary difference C Difference between IFRS and ASPE D. Permanent difference #2 Answer: (3). What adjustment is needed to accounting income regarding the 2-year advertising service? A Add $37,500 to taxable income. B. Add-back $37,500 to accounting income. C. Add-back $75,000 to accounting income. D. Deduct So from accounting income as the service is completed in 2022. 13 Answer: (4). When adjusting accounting income to taxable income, depreciation expense and capital cost allowance require adjustments. What is the NET adjustment needed [2 marks)? A Deduct $60,000 8. Deduct $12,000 C Add-back $144,000 D. Add-back $12,000. 4 Answer: (5). What tax rate is used to calculate the current income tax expense for the year ended December 31, 20207 A 25% B. 15% C 30% D. 12.5% 5 Answer: (6). Assuming Patio Co. has a positive taxable income, what statement correctly explains the current Income tax presentation on the Statement of Financial Position at December 31, 2020? A Patio Co. would show a current asset called income tax receivable. 8. Patio Co. would show a non-current ability called income tax payable. CPatio Co. would show a current liability called income tax payable

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