Cell Image Corp. reported a deferred tax liability of $148,500 in 20X5, caused by equipment...
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Cell Image Corp. reported a deferred tax liability of $148,500 in 20X5, caused by equipment with a UCC of $1,515,000 and net book value of $2,010,000. The tax rate was 30%. In 20X6, accounting earnings were $380,000, depreciation expense was $165,000, and CCA was $230,000. The tax rate is 40%. Required: 1. Calculate tax payable. Income tax payable 2. Calculate the tax basis of the equipment. (Enter your answers in thousands.) Tax basis 3. Calculate the accounting basis of the equipment. (Enter your answers in thousands.) Accounting basis 4. Calculate the amount of the deferred income tax adjustment. (Enter your answers in thousands. Round your answer to 1 decimal places.) Deferred income tax adjustment 5. Calculate the amount of the adjustment in requirement 4 that was caused by the (a) change in the tax rate and (b) new temporary difference. (Amounts to be deducted should be indicated with a minus sign.) a. Change in the tax rate b. New temporary difference 6. Calculate tax expense for 20X6. Tax expense
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