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Mercury Limited reported earnings of $120,000 in 20X9. The company has $60,000 of depreciation expense...

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Accounting

Mercury Limited reported earnings of $120,000 in 20X9. The company has $60,000 of depreciation expense this year, and claimed CCA of $101,000. The tax rate was 25%. At the end of 20X8, there was a $14,000 loss carryforward reported in a deferred tax asset account valued at $2,800, and a deferred tax liability of $37,400 caused by capital assets with a net book value of $610,000 and UCC of $395,000. Required: What is the amount of income tax expense in 20X9? Prepare the income tax entry or entries.

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