The following information relates to a building owned by a company. $$\begin{array} { l r }
\text { Cost of the building } & \$ 2,500,000 \
\text { Net book value } & \$ 1,700,000 \
\text { CCA deducted to date } & \$ 1,525,000 \
\text { Tax rate } & 40 \%
\end{array}$$ A) Calculate the balance in the future income tax account.
B) Indicate where on the financial statement the account would be found.C) Explain when this amount is due to be received or paid by the company.

Question

The following information relates to a building owned by a company. $$\begin{array} { l r } 
\text { Cost of the building } & \$ 2,500,000 \
\text { Net book value } & \$ 1,700,000 \
\text { CCA deducted to date } & \$ 1,525,000 \
\text { Tax rate } & 40 \%
\end{array}$$ A) Calculate the balance in the future income tax account.
B) Indicate where on the financial statement the account would be found.C) Explain when this amount is due to be received or paid by the company.

Quizplus · Accepted Answer

The Answer of The following information relates to a building owned by a company. $$\begin{array} { l r } 
\text { Cost of the building } & \$ 2,500,000 \
\text { Net book value } & \$ 1,700,000 \
\text { CCA deducted to date } & \$ 1,525,000 \
\text { Tax rate } & 40 \%
\end{array}$$ A) Calculate the balance in the future income tax account.
B) Indicate where on the financial statement the account would be found.C) Explain when this amount is due to be received or paid by the company.

The Following Information Relates to a Building Owned by a Company