Question
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)
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?
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Cost Benefit Analysis With Reference To Environment And Ecology
Authors: James H. Meisel, K. Puttaswamaiah
1st Edition
1138521329, 978-1138521322
