What is the measurement of the dit expense or recovery

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Question - For the year ended December 31, 2021, Garbanzo Inc. Company, a publicly traded corporation reported accounting income before income taxes of $876,000.

Garbanzo Inc.'s tax rate is 31%, enacted in 2021 (not known until that year). The rate for all previous tax years was 30%.

On January 1, 2021, the NBV of PPE was $560,000, while UCC for the same PPE was $525,000. (Hint: The opening DIT Asset/Liability balance was set up at 30%.)

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

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

Reference no: EM133166389

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