in cash received during 2014, but tax rules require the company to pay tax on this amount in 2014. In addition, depreciation for tax purposes (capital cost allowance) exceeds accounting depreciation by $30,000 for 2014. Ottawa Rafting pays tax at a rate of 25%. Requirements 1. Compute Ottawa Rafting’s taxable income for 2014. 2. Journalize the corporation’s income taxes for 2014. View Solution:
Ottawa Rafting Inc reported pretax accounting income of 200 000 for