Mercury Limited reported earnings of $165,000 in 20X9. The company has $69,000 of depreciation expense...
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Mercury Limited reported earnings of $165,000 in 20X9. The company has $69,000 of depreciation expense this year, and claimed CCA of $110,000. The tax rate was 25%. At the end of 20X8, there was a $17,000 loss carryforward reported in a deferred tax asset account valued at $3,700, and a deferred tax liability of $39,200 caused by capital assets with a net book value of $700,000 and UCC of $440,000.
Required: What is the amount of income tax expense in 20X9?
Prepare the income tax entry or entries.
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