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Question - Accounting income for the year ended June 30, 2020 was $126,000. No permanent differences existed during the fiscal year. The company was expected to operate profitably in the future. The tax rate was 15% for the current and future years. Pronghorn Inc. follows IFRS.
Temporary difference, giving rise to future taxable amounts $86,000 $162,000
Temporary difference, giving rise to future deductible amounts 28,000 89,000
Calculate the amount of taxable income for 2020.
Prepare the journal entries to record income taxes for 2020.
Calculate the effective rate for 2020.
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