Hello,

How do I calculate the company's current and deferred income tax expense for 2013.

And, how do I reconcile between the accounting income before income taxes at the statutory tax rate for the year and the income tax expense reported in the company's income statement for the year.

The following information is available with respect to the income tax accounts of Lamanai Limited as at December 31, 2012:

Tax loss carried forward from 2010$400,000

Net book value of amortizable capital assets 900,000

Undepreciated capital cost of amortizable capital assets800,000

Deferred income tax asset (loss-carry-forward)140,000

Deferred income tax liability (capital assets)35,000

The following information is available with respect to the company's 2013 operations:

Accounting income before income taxes$450,000

Amortization expense140,000

Capital cost allowance claimed100,000

Non-taxable dividend income80,000

Meals and entertainment expense 40,000

(Only 50% of the meals and entertainment expenses are deductible in determining taxable income.)

The income tax rate for 2013 was 33%.