Accounting earnings before tax $ 14,500 $ 19,500 $ (54,400 ) $ 14,500 Depreciation expense (original cost of the asset, $79,500) 10,500 10,500 5,100 10,500 Golf club dues 7,500 8,500 16,500 8,500 CCA (maximum available claim) 7,500 10,500 25,500 14,500 Tax rate—enacted in each year 20 % 20 % 30 % 35 % Required: 1. Calculate taxable income each year, and tax payable. Tyler claims the cost of the asset, $79,500) 10,500 10,500 5,100 10,500 Golf club dues 7,500 8,500 16,500 8,500 CCA (maximum available claim) 7,500 10,500 25,500 14,500 Tax rate—enacted in each year 20 % 20 % 30 % 35 %.

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?

Answer rating: 100% (QA)

Year 1 Taxable income ... View the full answer