Marissa Moose is a self-employed tax accountant in Alberta. The current year’s income statement for Marissa’s business (determined according to generally accepted accounting principles) is as follows: Professional income $300,000 Other expenses ($121,000) Net Income $179,000 Included in Other Expenses are the following amounts:

 (a) A $5,000 contribution to the federal Liberal political party

 (b) Travel expenses of $15,000 for Marissa and her husband to go to Laguna Beach, CA on vacation 

(c) Accounting depreciation on furniture and fixtures is $1,000. The UCC in Class 8 is $12,000

 (d) Golf course membership dues of $8,000 plus the cost of all meals purchased at the golf course for $2,000

 (e) Salary of $90,000 paid to Marissa's husband for cleaning up the office occasionally (note: an average janitor's salary is $45,000) 

Required: Calculate net business income for tax purposes for Marissa's business. Explain any items not included in your calculations.

Answer rating: 100% (QA)

Computation of Net Profit Particulars Amount Professional income 300000 ... View the full answer