Bogdan Ltd. shows the following on its 31 December 20X4 statement of financial position:

All this income tax liability relates to the difference between the NBV and UCC of property, plant, and equipment. At 31 December 20X4, NBV is $9,630,000, and UCC is $7,455,000.
In 20X2, 20X3, and 20X4, the company had reported a total taxable income of $324,750 and paid taxes of $81,450.
In 20X5, Bogdan reported an accounting loss before tax of $480,000. Depreciation of $67,500 is included in this calculation. No CCA will be claimed in 20X5. The enacted tax rate was 40% in 20X5.

Required:
1. Calculate the tax loss in 20X5.
2. How much of the tax loss can be used as a loss carryback? What will be the benefit of this loss carryback?
3. How much of the loss is available as a tax loss carryforward? What is the benefit of this tax loss carryforward?
4. Under what circumstances can the benefit of the tax loss carryforward be recorded as an asset?
5. Record income tax for 20X5, assuming that the tax loss carryforward can be recorded.
6. Record income tax for 20X5, assuming that the tax loss carryforward cannot be recorded.
7. Assume that accounting and taxable income was $150,000 in 20X6 and the enacted tax rate was still 40%. Prepare the journal entry to record income tax in 20X6, assuming that the tax loss carryforward 

(a) Was recorded in 20X5 as in requirement 5, and 

(b) Was not recorded in 20X5 as in requirement 6.

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Deferred income tax liability $870,000