Sol Ltd. reported earnings of $400,000 in 20X8. The company has $80,000 of depreciation expense this year,
Question:
Sol Ltd. reported earnings of $400,000 in 20X8. The company has $80,000 of depreciation expense this year, and claimed CCA of $120,000. The tax rate was 28%. At the end of 20X7, there was a $100,000 loss carryforward that was not recorded because use was considered less than probable. The company also reported a deferred tax liability of $60,000 caused by capital assets with a net book value of $1,200,000 and UCC of $900,000. The tax rate had been 20% in 20X7.
Required:
What is the amount of income tax expense in 20X8? Prepare the income tax entry or entries.
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Related Book For
Intermediate Accounting Volume 2
ISBN: 9781260881240
8th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
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