Accounts Receivable

Construction in Process
Revenue from Long-Term Contracts
Construction Expenses
Billings on Construction in Process

Equipment
Accumulated DepreciationEquipment
Undepreciated Capital Cost

$332,000
516,000
516,000
360,000
402,000

$
$
$

1,150,000.00
172,000.00
1,039,000.00

Statement of Financial PosiTax Base

Carrying Amount
PPE
$ 1,039,000.00 $
978,000.00
Construction in Process
360,000
516,000

Accounting income
Reversing differences:
PPE:
Depreciation expense
CCA
Construction in Process
Gross Profit - Percentage completion
Gross profit-Completed contract method
Taxable income
Current income taxes

Tax rate

Deductible/taxabTax
$
61,000.00
$ (156,000.00)

42%
186000

Deferred tax liability

42% $
25,620.00
42% $
(65,520.00)
$
(39,900.00)
186000

$ 172,000.00
$ (111,000.00) $

ercentage completion
mpleted contract method

61,000.00
-156,000

$
$

91,000.00
38,220.00

Accounts Receivable
Construction in Process
Revenue from LongTerm Contracts
Construction Expenses
Billings on Construction in Process
Equipment
Accumulated DepreciationEquipment
Undepreciated Capital Cost
Income before income tax
Tax rate

Statement of Financial Position Account

PPE
Construction in Process
Deferred tax liability Dec 31 2015
Deferred tax liability before adjustment
Incr in deferred tax liability, and deferred tax exp 2015

Accounting income
Reversing differences
PPE
Dep exp
CCA
Construction in process
GP-Percentage completion
GP-Completed contract
Taxable income
Current income taxes

290,000
-366,000

Deferred tax liability

54500

taxable income
incom tax payable
current tax expense
income tax payable
deferred tax expense
deferred tax liability

10,000
2500
2500
$

(29,500.00)

Income before income tax

Income tax exp -current
Income tax exp-deferred
Net income

$
$
$

2015
128,000
2500
29,500.00
32,000.00
96,000.00
15-Feb

Non-current assets
deferred tax asset
current liabilities
deferred tax liability
Non-current liabilities
deferred tax liability

Non current liabilities

0
48000
6500
2015
54500

Tax base

2015
$117,000
973,000
473,000
431,000
394,000
1,100,000
460,000
614,000

2014
$320,000
500,000
500,000
350,000
400,000
1,100,000
170,000
980,000

128,000
0.25

195,000

Carrying amount Deductible/Taxable Temp DiffTax Rate

614,000
640,000
-26,000
0.25
781,000
973,000
-192,000
0.25

128,000

-76,000
-42,000
10,000
2500

2500
$

(29,500.00)

$
$

2014
195,000
23750
25000
48,750.00
146,250.00
14-Feb
12500
37500
0
2014
25000

Deferred tax asset

-6500
-48000
-54500
$
(25,000.00)
$
(29,500.00)

2013
deferred tax liability

2014
Temp differences

31200

2015
2016
2017
2018

$68,300
50,300
46,100
39,400
$204,100

Tax Rate
2013
2014
2015
2016
2017
Deferred tax

0.35
0.35
0.34
0.34
0.29
2013
2014
2015
2016
2017
2018.00

0.35
0.35
0.34
0.34
0.29
0.29

$68,300
50,300
46,100
39,400
$204,100

$33,919
Deferred tax

2013
2014
2015
2016
2017
2018

0.35
0.35
0.33
0.31
0.31
0.31

68300
50300
46100
39400
204100

204100

$23,222
$17,102
$13,369
$11,426
$65,119

22539
15593
14291
12214
64637
($482)

Accounting
Income
(Loss)
$125,000
98,000
-294,000
216,000

Year
2012
2013
2014
2015
2012 current tax expense
income tax payable
2013 current tax expense
income tax payable
2014 income tax receivable
current tax benefit
deferred tax asset
deferred tax beenfit

2015 current tax expense

income tax payable
deferred tax expense
deferred tax asset

2014 income tax receivable

current tax benefit
deferred tax asset
deferred tax benefit

Tax Rate
32%
32%
37%
37%

$40,000
$40,000
31360
31360
$71,360
$71,360
$26,270
$26,270

53,650
53,650
$26,270
$26,270

$71,360
$71,360
20228
20228

2015 current tax expense

income tax payable

$53,650

deferred tax expense

deferred tax asset

$20,228

$53,650

$20,228

$71,000

2014
income before income tax
income tax benefit - current
income tax benefit-deferred
net loss

-294,000
$71,360
$26,270

$97,630
($196,370)

2015
income before income tax
income tax expense - current
income tax expense-deferred
net income

216,000
53,650
$26,270

79,920
136,080

2014
income before income tax
income tax benefit - current
income tax benefit -deferred
net loss

-294,000
$71,360
$20,228

$91,588
($202,412)

2015
income before income tax
income tax expense - current
income tax expense-deferred
net income

216,000
$53,650
$20,228

$73,878
$142,122.10