Calculate the amount of the deferred income tax adjustment

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Cell Image Corp. reported a deferred tax liability of $97,000 in 20X5, caused by equipment with a UCC of $1,505,000 and net book value of $1,990,000. The tax rate was 20%. In 20X6, accounting earnings were $360,000, depreciation expense was $155,000, and CCA was $210,000. The tax rate is 30%.

Problem 1: Calculate the tax basis of the equipment.

Problem 2: Calculate the accounting basis of the equipment.

Problem 3: Calculate the amount of the deferred income tax adjustment.

Reference no: EM132939715

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