Question
Bramble Corporation purchased equipment very late in 2017. Based on generous capital cost allowance rates provided in the Income Tax Act, Bramble Corporation claimed CCA
Bramble Corporation purchased equipment very late in 2017. Based on generous capital cost allowance rates provided in the Income Tax Act, Bramble Corporation claimed CCA on its 2017 tax return but did not record any depreciation because the equipment had not yet been put into use. This temporary difference will reverse and cause taxable amounts of $34,800 in 2018, $31,100 in 2019, and $46,700 in 2020. Brambles accounting income for 2017 is $237,200 and the tax rate is 34% for all years. There are no deferred tax accounts at the beginning of 2017. calculate the deferred tax asset liability for 2017?
Prepare the income tax expense section of the income statement for 2017, beginning with the line Income before income tax. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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