Mercury Limited reported earnings of $$75,000$ in $20$X$9.$ The company has $$55,000$ of depreciation expense this year, and claimed CCA of $$90,000.$ The tax rate was $25\%.$ At the end of $20$X$8,$ there was a $$10,000$ loss carryforward reported in a deferred tax asset account valued at $$2,200,$ and a deferred tax liability of $$35,200$ caused by capital assets with a net book value of $$500,000$ and UCC of $$340,000.$The tax expense is $23250$Record the entry income tax expense.Record the entry loss carryforward.

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To record the income tax expense and the loss carryforward we need to consider the information provi... View the full answer