Questions from Intermediate Accounting

Q: Access the annual report for Air Canada for its December 31,

Access the annual report for Air Canada for its December 31, 2014 fiscal year end from SEDAR or the company’s website (www.aircanada.com). Also, access the annual report for the year ended December 31...

Q: The consolidated financial statements of Deutsche Lufthansa AG for the year ended

The consolidated financial statements of Deutsche Lufthansa AG for the year ended December 31, 2014 are available in the company’s 2014 Annual Report on the www.lufthan sagroup.com website. Instructi...

Q: Chen Corporation reported income before income tax for the year ended December

Chen Corporation reported income before income tax for the year ended December 31, 2017 of $1,645,000. In preparing the 2017 financial statements, the accountant discovered an error that was made in 2...

Q: Aaron Engines Ltd. operates small engine repair outlets and is a

Aaron Engines Ltd. operates small engine repair outlets and is a tenant in several of Tran Holdings Inc.’s strip shopping malls. Aaron signed several lease renewals with Tran that ea...

Q: On December 31, 2016, Haley Inc. has taxable temporary

On December 31, 2016, Haley Inc. has taxable temporary differences of $2.2 million and a deferred tax liability of $616,000. These temporary differences are due to Haley having claimed CCA in excess o...

Q: At December 31, 2016, Wright Corporation had a temporary difference

At December 31, 2016, Wright Corporation had a temporary difference (related to pensions) and reported a related deferred tax asset of $30,000 on its balance sheet. At December 31, 2017, Wright has fi...

Q: Eloisa Corporation applies IFRS. Information about Eloisa Corporation’s income before income

Eloisa Corporation applies IFRS. Information about Eloisa Corporation’s income before income tax of $633,000 for its year ended December 31, 2017 includes the following: 1. CCA reported on the 2017 ta...

Q: The accounting income of Grace Corporation and its taxable income for the

The accounting income of Grace Corporation and its taxable income for the years 2017 to 2020 are as follows: The change in the tax rate from 25% to 30% was not enacted until early in 2018. Accountin...

Q: The following information applies to Edward Corporation, which reports under IFRS

The following information applies to Edward Corporation, which reports under IFRS. 1. Prior to 2016, taxable income and accounting income were identical. 2. Accounting income was $1.7 million in 2016...

Q: The accounting records of Steven Corp., a real estate developer,

The accounting records of Steven Corp., a real estate developer, indicated income before income tax of $850,000 for its year ended December 31, 2017, and of $525,000 for the year ended December 31, 20...