Question 27 The following information relates to Bridgeport

Question 27 The following information relates to Bridgeport Inc.: At July 1, 2016 At June 30, 2017 Temporary difference, giving rise to future taxable amounts Temporary difference, giving rise to future deductible amounts $82,000 34,000 $159,000 84,000 Accounting income for the year ended June 30, 2017 was $128,000. No permanent differences existed during the fiscal year. The company was expected to operate profitably in the future. The tax rate was 17% for the current and future years. Bridgeport Inc. follows IFRS. Your answer has been saved and sent for grading. See Gradebook for score details. Calculate the amount of taxable income for 2017. Taxable income, 2017$

Solution

1) Taxable Income

2) Journal Entry

Particulars	Amount
Accounting Income	$128000
- Temporary difference (Future taxable Income) ($159000 - $82000)	($77000)
+ Temporary Difference (Future Deductible expenses) ($84000 - $34000)	$50000
Taxable Income	$101000