On January 1, 2017, Wings Inc. purchased a machine for $270,000, which will be depreciated $27,000 annually for book purposes. For income tax reporting, the asset is a Class 8 asset with a CCA rate of 20%, subject to the half year rule for 2017. Assume a present and future enacted income tax rate of 30%. What amount should be added to Wings' deferred tax liability for the difference between depreciation and CCA at December 31, 2017?

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The Answer of On January 1, 2017, Wings Inc. purchased a machine for $270,000, which will be depreciated $27,000 annually for book purposes. For income tax reporting, the asset is a Class 8 asset with a CCA rate of 20%, subject to the half year rule for 2017. Assume a present and future enacted income tax rate of 30%. What amount should be added to Wings' deferred tax liability for the difference between depreciation and CCA at December 31, 2017?