Calculate income tax expense

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Question - The following information is available for Swifty Corporation for 2020.

1. CCA that was reported on the 2020 tax return exceeded depreciation reported on the income statement by $179,200. This difference is expected to reverse in equal amounts of $44,800 per year over the period 2021 to 2024.

2. Dividends received from taxable Canadian corporations were $25,760.

3. Rent collected in advance on January 1, 2020 totalled $100,800 for a three-year period. Of this amount, $67,200 was reported as unearned for book purposes at December 31, 2020.

4. The tax rates are 25% for 2020 and 30% for 2021 and subsequent years.

5. Income taxes payable are $224,000 for 2020.

Required -

a) Calculate taxable income.

b) Calculate income tax payable.

c) Calculate income tax expense.

Reference no: EM132696458

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