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Earnings (loss) Depreciation (assets have a cost of $570,000) CCA Non-taxable revenue Tax rate 20x7 (first year of operations) $235,000 $ 47,500 $ 95,000 $ 37,000 25% 20x8 $(345,000) $ 47,500 $ 135,000 $ 17,000 25% What is the amount of the taxable income or loss in each year? (Negative amounts and deductible amounts should be ndicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)

Earnings (loss) Depreciation (assets have a cost of $570,000) CCA Non-taxable revenue Tax rate 20x7 (first year of operations) $235,000 $ 47,500 $ 95,000 $ 37,000 25% 20x8 $(345,000) $ 47,500 $ 135,000 $ 17,000 25% What is the amount of the taxable income or loss in each year? (Negative amounts and deductible amounts should be ndicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Earnings (loss) Depreciation (assets have a cost of $570,000) CCA Non-taxable revenue Tax rate Taxable income 1. 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. Leave no cells blank - be certain to enter "0" wherever required.) Accounting earnings Permanent difference: Accounting income subject to tax Temporary difference: Taxable income 20X7 20x7 (first year of operations) $235,000 $ 47,500 $ 95,000 $ 37,000 25% 20X8 20X8 $(345,000) $ 47,500 $ 135,000 $ 17,000 25%
Transcribed Image Text:Earnings (loss) Depreciation (assets have a cost of $570,000) CCA Non-taxable revenue Tax rate Taxable income 1. 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. Leave no cells blank - be certain to enter "0" wherever required.) Accounting earnings Permanent difference: Accounting income subject to tax Temporary difference: Taxable income 20X7 20x7 (first year of operations) $235,000 $ 47,500 $ 95,000 $ 37,000 25% 20X8 20X8 $(345,000) $ 47,500 $ 135,000 $ 17,000 25%
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