What is the measurement of the dit expense

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Question - For the year ended December 31, 2021, Pinto Inc. Company, a publicly traded corporation reported accounting income before income taxes of $928,000.

Pinto Inc.'s tax rate is 30%, enacted in 2021 (not known until that year). The rate for all previous tax years was 25%.

On January 1, 2021, the NBV of PPE was $525,000, while UCC for the same PPE was $560,000. (Hint: The opening DIT Asset/Liability balance was set up at 25%.)

Depreciation expense for 2021 was $42,000; CCA for 2021 was $32,000.

Required - What is the measurement of the DIT expense or recovery for this PPE?

Reference no: EM133167334

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