Geisler Corp.provided you with the following information for the year ending December 31,2017: Net Income before taxes: $150,000
Depreciation (included in above)$90,000
CCA$250,000
The net book value of the capital assets was $1,100,000,and their UCC was $900,000 on January 1,2017.
A temporary difference of $200,000 is reflected in an accumulated deferred income tax liability (DTL)balance of $90,000 at January 1,2017.
There were no permanent differences.
Taxable income in the three-year carry back period was $400,000.Tax losses are carried back as far as allowable by law.
A tax rate of 45% applies to the current and previous years.
Based on the above information,what is Geisler's tax recovery for 2017?
A) $4,500
B) $0
C) $180,000
D) $40,500
E) cannot be determined

Question

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The Answer of Geisler Corp.provided you with the following information for the year ending December 31,2017: Net Income before taxes: $150,000
Depreciation (included in above)$90,000
CCA$250,000
The net book value of the capital assets was $1,100,000,and their UCC was $900,000 on January 1,2017.
A temporary difference of $200,000 is reflected in an accumulated deferred income tax liability (DTL)balance of $90,000 at January 1,2017.
There were no permanent differences.
Taxable income in the three-year carry back period was $400,000.Tax losses are carried back as far as allowable by law.
A tax rate of 45% applies to the current and previous years.
Based on the above information,what is Geisler's tax recovery for 2017?
A) $4,500
B) $0
C) $180,000
D) $40,500
E) cannot be determined