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Mercury Limited reported earnings of $115,000 in 20X9. The company has $59,000 of depreciation expense...

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Accounting

Mercury Limited reported earnings of $115,000 in 20X9. The company has $59,000 of depreciation expense this year, and claimed CCA of $100,000. The tax rate was 20%. At the end of 20X8, there was a $15,000 loss carryforward reported in a deferred tax asset account valued at $2,700, and a deferred tax liability of $37,200 caused by capital assets with a net book value of $600,000 and UCC of $390,000.

Required: What is the amount of income tax expense in 20X9?

Prepare the income tax entry or entries.

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