Jupiter Ltd. reported the following:

	20X7 (first year of operations)						20X8
Earnings (loss)		$	96,000					$	(360,000	)
Depreciation (assets have a cost of $1,300,000)		$	52,000					$	52,000
CCA		$	65,000					$	117,000
Non-deductible expenses		$	34,000					$	34,000
Tax rate			25	%					25	%

Prepare a journal entry for income tax for 20X8 assuming probability of loss carryforward use is low. 3-a. What is the amount of the taxable income or loss in each year? Assuming that Jupiter decides to not claim CCA in 20X8 or 20X7.

3-b. What is the amount of the loss carryforward at the end of 20X8?