Business Income Bison Consulting is a sole proprietorship owned by Kevin Bison in London, Ontario. For...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Business Income Bison Consulting is a sole proprietorship owned by Kevin Bison in London, Ontario. For the year ended December 31, 2021, Kevin calculated Net Income for Bison Consulting of $70,000. Kevin determined this amount using generally accepted accounting principals. Other Information: The following amounts were included in the accounting expenses: Amortization expense $1,200 Golf Club Dues for entertaining clients 6,000 Charitable Donations 4,000 Business meals & entertainment 8,000 Advertising 3,000 Also included in the expenses was $3,000 paid to his daughter Karen for washing his car once a week for the summer. Monies were to be put away to help her with her tuition for college in the fall Kevin and his wife Kathy attended a consulting convention in Vancouver in the fall. Total cost deducted for this convention was $4,000 (no meals were deducted). While Kevin was at the convention, Kathy was site seeing around Vancouver. Cost associated with Kathy making the trip were $1.500 Kevin's only depreciable property was furniture & fixtures. The UCC balance for January 1, 2021 was $3,000. There were no additions or dispositions during the year. Kevin maintained a home office in his basement where he regularly met with clients. The size of this office was 144 square feet, and he had a total square footage of 2880. The following expenses related to his home office: Utilities $2,200 Property Tax 1,000 Mortgage Interest 4,000 Insurance 800 Maintenance & repairs 500 Required: Using the above information, calculate the minimum Net income for tax purposes, Kevin must report on his 2021 tax return. (show all workings). Explain anything you omitted from the calculation. Business Income Bison Consulting is a sole proprietorship owned by Kevin Bison in London, Ontario. For the year ended December 31, 2021, Kevin calculated Net Income for Bison Consulting of $70,000. Kevin determined this amount using generally accepted accounting principals. Other Information: The following amounts were included in the accounting expenses: Amortization expense $1,200 Golf Club Dues for entertaining clients 6,000 Charitable Donations 4,000 Business meals & entertainment 8,000 Advertising 3,000 Also included in the expenses was $3,000 paid to his daughter Karen for washing his car once a week for the summer. Monies were to be put away to help her with her tuition for college in the fall Kevin and his wife Kathy attended a consulting convention in Vancouver in the fall. Total cost deducted for this convention was $4,000 (no meals were deducted). While Kevin was at the convention, Kathy was site seeing around Vancouver. Cost associated with Kathy making the trip were $1.500 Kevin's only depreciable property was furniture & fixtures. The UCC balance for January 1, 2021 was $3,000. There were no additions or dispositions during the year. Kevin maintained a home office in his basement where he regularly met with clients. The size of this office was 144 square feet, and he had a total square footage of 2880. The following expenses related to his home office: Utilities $2,200 Property Tax 1,000 Mortgage Interest 4,000 Insurance 800 Maintenance & repairs 500 Required: Using the above information, calculate the minimum Net income for tax purposes, Kevin must report on his 2021 tax return. (show all workings). Explain anything you omitted from the calculation.
Expert Answer:
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
Posted Date:
Students also viewed these accounting questions
-
The income statement for the year ended December 31, 2014, as well as the balance sheets as of December 31, 2014, and December 31, 2013, for Lucky Lady Inc. follow. This information is taken from the...
-
The income statement for the year ended December 31, 2007, for Mayr Melnhof Karton, an Austrian paper and packaging manufacturer, appears in Exhibit 1.11 Mayr Melnhof reports all amounts in thousands...
-
In its income statement for the year ended December 31, 2010, Maris Company reported the following condensed data. Instructions (a) Prepare a multiple-step income statement. (b) Calculate the profit...
-
A limited partnership: Multiple Choice has an unlimited life. can opt to be taxed as a corporation. terminates at the death of any one limited partner. has at least one partner who has unlimited...
-
Tort law allows compensation for individuals whose person or property has been injured. Applying some critical thinking questions to tort law can help you better understand this chapter. 1. As...
-
Prepare a statement of cash flows using the indirect method for the ABC Co for the year 2012. ABC Co. Balance Sheet 1/1/2012 12/31/2012 Increase/(Decrease) Cash 700,000 840,000 140,000 Marketable...
-
State a conclusion. Exercises 1015 refer to the following data: Anthropologists can estimate the birthrate of an ancient society by studying the age distribution of skeletons found in ancient...
-
Efficient securities market theory has long been under attack from behavioural finance, which draws on psychological theories of investor behaviour to explain why security prices do not always behave...
-
Pick any Fortune 500 Company on which to conduct a SWOT analysis. Choose at least two strengths and weaknesses and at least four opportunities and threats. Provide a thorough justification for all 12...
-
For SKIMS by KIM KARDASHIAN Promotional Mix and IMC Tools Identify the key marketing communication methods and specific IMC tools you will use in your marketing campaign. How will you use each of...
-
The Protect-All home-security alarm service currently charges $200/year for its home-alarmservices. They are opening up a new market area for their services, which containsapproximately 5,000 homes....
-
What is the New York Stock Exchange (NYSE)?
-
What is a firms enterprise value, and what does it measure?
-
What is the diluted earnings per share?
-
What is the balance sheet identity?
-
In what two cases is the internal rate of return easy to calculate?
-
Discuss the ethical considerations of using employee monitoring software and other forms of workplace surveillance. How can organizations balance the need for productivity with employee privacy?
-
Write a while loop that uses an explicit iterator to accomplish the same thing as Exercise 7.3. Exercise 7.3. Write a for-each loop that calls the addInterest method on each BankAccount object in a...
-
CB Ltd. is a Canadian-controlled private corporation owning a portfolio of investments including stocks, bonds, and rental properties. The financial statements for the year ended June 30, 20X1, show...
-
It is assumed that Carletti's personal tax rate is 45%. Peter Carletti is a professional architect employed by a Halifax-based architectural firm. He is 58 years old and married, and has a...
-
Why is the purchase of rental real estate often referred to as a tax-sheltered investment?
-
Hydrogen gas is expanded reversibly and adiabatically from a volume of \(2.12 \mathrm{dm}^{3}\) at a pressure of \(4 \mathrm{~atm}\) and \(32^{\circ} \mathrm{C}\) until the volume is doubled....
-
If \(C_{P}=a+b T+C T^{2}\), derive a relation to the isobaric mean heat capacity \(\dot{Q}\).
-
A spherical balloon of 1 m diameter contains a gas at 120 kPa. The gas inside the balloon is heated until the pressure reaches 360 kPa. During heating the pressure of the gas inside the balloon is...
Study smarter with the SolutionInn App