Jupiter Ltd. reported the following: Earnings (loss) Depreciation (assets have a cost of $1,600,000) CCA Non-deductible expenses Tax rate 20X7 (first year of operations) $70,000 $64,000 $ $80,000 $37,000 20X8 $(375,000) 64,000 $ 144,000 $ 37,000 25% 25% 1-a. What is the amount of the taxable income or loss in each year? (Negative amounts and deductible amounts should be indicated by a minus sign.) Answer is complete and correct. Taxable income 20X7 20X8 $ Accounting earnings $ 70,000 (375,000) Permanent difference: Non-tax-deductible expenses 37,000 37,000 Accounting income subject to tax 107,000 (338,000) Temporary difference: Depreciation 64,000 64,000 CCA (80,000) (144,000) $ Taxable income $ 91,000 (418,000) 1-b. What is the amount of the loss carryforward at the end of 20X8? Answer is complete and correct. Loss carryforward $ 327,000 2. Prepare a journal entry for income tax for 20X8 assuming probability of loss carryforward use is low. Answer is not complete. No 1 Date 20X8 Income tax receivable Deferred income tax asset General Journal Income tax expense (recovery) Debit 22,750 Credit 20,000 42,750 x