Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. mercury limited reported earnings of $165,000 in 2

Mercury Limited reported earnings of $165,000 in 20X9. The company has $69,000 of depreciation expense...

90.2K

Verified Solution

Question

Accounting

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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

All of the following are listed as a farm and ranch improvement in Paragraph 2...

Algebra
Q

A department adds raw materials to a process at the beginning of the process and incurs...

Accounting
Q

4 10 points Find the two square roots of 1 i 3 and write the...

Algebra
Q

Find the exact area of this entir EXACT means leave in terms of and in...

Algebra
Q

relevant and irrelevant costs of buying a pizza ftom the pizza hut

Accounting
Q

2. Monthly vs. Yearly Sayings You are able to save $200...

Accounting
Q

During 2021, the corporation earned $155,000 and the board declared and paid $30,000 in dividends...

Accounting
Q

3.1 REQUIRED Calculate the following from the information given below: 3.1.1 Break-even quantity (3 marks)...

Accounting
Q

10:15

Finance
Q

You're comparing two companies: Rayburn and Telford and observe these ratios. ...

Finance
Q

Mailings Review View Help t References Aa A E 2. A. S E AaBbCcDc AaBbCcDc...

Finance
Q

Which of the following statements regarding a 15-year (180-month) $225,000, fixed-rate mortgage is CORRECT? (Ignore...

Finance