Prepare the income tax entry or entries

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Problem - LCF Use, Change in Rate: Mercury Ltd. reported earnings of $75,000 in 20X9. The company has $55,000 of depreciation expense this year, and claimed CCA of $90,000. The tax rate was 25%. At the end of 20X8, there was a $10,000 loss carryforward reported in a deferred tax asset account valued at $2,200, and a deferred tax liability of $35,200 caused by capital assets with a net book value of $500,000 and UCC of $340,000. What is the amount of income tax expense in 20X9? Prepare the income tax entry or entries.

Reference no: EM132867423

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