Lin Ltd. reported the following:

20X7 (first year of operations)20X8Earnings (loss)$97,000$(164,000)Depreciation (assets have a cost of $330,000)$40,000$40,000CCA$55,000$65,000Non-deductible expenses$17,000$17,000Tax rate25%25%

1. What is the amount of the taxable income or loss in each year?(Negative amountsand deductible amounts should be indicated by a minus sign.)

2. How much is the tax refund to be claimed in 20X8?

3. How much is tax expense (recovery) in 20X8, assuming that use of the loss carryforward is not probable?