Reference no: EM132942671

In its first two years of operations, Living Robotics Inc. (LRI) generated taxable income of $50,000 and $200,000, when tax rates were 15% and 18% respectively.

LRI's summary income statement for the current year, 2016 is as follows:
Fee revenue $ 7,200,000
Operating expenses other than depreciation & interest 6,300,000
Depreciation expense 750,000
Interest expense 320,000
Loss before income taxes $ (170,000)

At the beginning of the year, LRI had a future tax liability of $36,000 based on $200,000 of temporary differences related to its fixed assets.

LRI will claim $890,000 of CCA in 2016. Management anticipates using all of the loss carry forwards within the allowable carry forward period.

LRI reports under IFRS.

Required:

Problem (a) Calculate LRI's taxable income/loss for 2016.