Leo is self-employed in the T-shirt distribution business. The following is Leo's income statement, for the calendar
Question:
Statement of Income
For the year ended December 31
(a) Legal fees include $500 of accrued fees for a pending lawsuit against Leo for the sale of distasteful T-shirts.
(b) Accounting fees include the purchase of a $1,200 computerized cash register.
(c) Interest expense includes $3,000 paid to the CRA for late instalment interest.
(d) The Cycle Safety Program cost was for Leo, who is an active environmentalist and rides his bicycle to work every day.
(e) Included in the cost of goods sold is $3,200 incurred for the purchase of shelving and lighting.
(0 Due to the nature of the transaction, the sale of Disney rights were not included in the financial statements. Leo actively trades rights for T-shirt logos. Net proceeds from the sale of the Disney rights were $15,000, and the cost of the logo rights was $6,800.
REQUIRED
Compute Leo's income from a business for tax purposes, before CCA, for the calendar year ending December 31.
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Step by Step Answer:
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett