Tyler Toys Ltd. reported the following:

Required:
1. Calculate taxable income each year, and tax payable. Tyler claims the maximum CCA each year.
2. How much of the loss could Tyler use as a tax loss carryback? How much tax refund will it receive? How much is the tax loss carryforward? How much is the tax benefit?

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Accounting earnings before tax Depreciation expense (original cost of asset, $75,000) Golf club dues CCA (maximum available claim) Tax rate-enacted in each year 20X3 $10,000 6,000 3,000 3,000 20% 20X4 20X5 20X6 $15,000 $(40,000) $10,000 6,000 6,000 6,000 4,000 3,000 4,000 6,000 12,000 10,000 20% 30% 35%