What is the amount of income tax expense

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Problem - Sol Limited reported earnings of $500,000 in 20X8. The company has $90,000 of depreciation expense this year, and claimed CCA of $140,000. The tax rate was 30%. At the end of 20X7, there was a $120,000 loss carry-forward that was not recorded because use was considered less than probable. The company also reported a deferred tax liability of $70,000 caused by capital assets with a net book value of $1,300,000 and UCC of $1,000,000. The tax rate had been 25% in 20X7. What is the amount of income tax expense in 20X8?

Reference no: EM132829910

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