A CCPC will earn a profit of $200,000 in 2021. Included in the calculation of that profit
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Question:
1, The taxpayer is given the choice of deducting or not deducting a reserve for bad debts in any particular year
2. The corporation pays tax at the rate of 15% on the first $500,000 of annual business income and 25% on income above that amount.
If the corporation chooses to not deduct the reserve in 2021, and instead deduct it in 2022, how much tax is saved in total between the two years? [Do not consider the time value of money)
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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