Mercury Limited 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 Required: What is the amount of income tax expense in 20X9? Tax expense S 23,250 Prepare the income tax entry or entries.
Mercury Limited 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 Required: What is the amount of income tax expense in 20X9? Tax expense S 23,250 Prepare the income tax entry or entries.
Chapter2: The Domestic And International Financial Marketplace
Section2.A: Taxes
Problem 2P
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![Mercury Limited 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.
Required:
What is the amount of income tax expense in 20X9?
Tax expense
$
Prepare the income tax entry or entries.
View transaction list
No
1
2
Date
20X9
23,250
20X9
View journal entry worksheet
Income tax expense
General Journal
Deferred income tax asset
Income tax payable
Income tax payable
Income tax expense
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F56762694-c654-4a26-aae4-0b4b212c8884%2Fcb6c6a00-b2af-40be-b074-e1968e2f36aa%2Fds1dkvm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mercury Limited 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.
Required:
What is the amount of income tax expense in 20X9?
Tax expense
$
Prepare the income tax entry or entries.
View transaction list
No
1
2
Date
20X9
23,250
20X9
View journal entry worksheet
Income tax expense
General Journal
Deferred income tax asset
Income tax payable
Income tax payable
Income tax expense
Debit
Credit
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