Reference no: EM133055592

Question - Vulko Corp. (Vulko) reported a loss of $332,000 for the year ended October 31, 2020. The following information is also available:

1. Vulko has been profitable over the past three years. Aggregate taxable income of$161,000 was reported, and income taxes amounting to $35,420 were paid.

2. At the beginning of fiscal 2020, Vulko's fixed assets had a net book value of $1,400,000.Depreciation of $155,000 was reported for fiscal 2020.

3. Vulko's sales team incurred meals and entertainment expenses of $15,000. Half of thesecosts are non-deductible for tax purposes.

4. Management has determined that 75% of any loss carryforwards would be more likelythan not to be realized.

5. The UCC of Vulko's fixed assets was $930,000 on November 1, 2019. CCA applies at arate of 20%.

6. Vulko was informed during the year that the tax rate applicable to its fiscal 2020 taxableincome had increased to 25% from the previous 22%. Vulko reports under IFRS.

Required - What is Vulko's taxable income for fiscal 2020? Show the journal entries to record Vulko's tax payable and future/deferred taxes for fiscal 2020.