Problem - The following information is available with respect to the income tax accounts of Lamanai Limited as at December 31, 2012:

Tax loss carried forward from 2010 $400,000

Net book value of amortizable capital assets 900,000

Undepreciated capital cost of amortizable capital assets 800,000

Deferred income tax asset (loss-carry-forward) 140,000

Deferred income tax liability (capital assets) 35,000

The following information is available with respect to the company's 2013 operations:

Accounting income before income taxes $450,000

Amortization expense 140,000

Capital cost allowance claimed 100,000

Non-taxable dividend income 80,000

Meals and entertainment expense 40,000

(Only 50% of the meals and entertainment expenses are deductible in determining taxable income.)

The income tax rate for 2013 was 33%.

Required:

Calculate the company's income tax expense for 2013, showing separately the current and deferred income tax amounts.

Prepare a reconciliation between the accounting income before income taxes at the statutory tax rate for the year and the income tax expense reported in the company's income statement for the year.