Mortel Industries, Ltd., follows IFRS and reported the following taxable incomes/losses and tax rates for the first five years ended December 31:

GENERAL INFORMATION:

Taxable income (loss):

2016: $ 50,000

2017: (400,000)

2018: 100,000

2019: 230,000

2020: 620,000

Tax rate:

2016: 25%

2017: 40%

2018: 34%

2019: 34%

2020: 42%

Mortel had decided to always first carryback losses in any given year before carrying them forward. All tax rate changes were enacted as of the beginning of the year and these rates were not known until the year of change.

REQUIRED:

1. For this Question, ignore the information on the amount of taxable loss given in the problem for 2017. Instead, now assume that Mortel decided that it was possible all of the losses would be used within the carryforward period and that in 2017 they correctly set up an asset of $408,000 to recognize this loss carry forward after carrying back the maximum loss possible to 2016. Also assume the 2018 tax rate was known in 2017. How much was the taxable loss in 2017?