Running Free Enterprises Ltd. has been operting for many years in Canada and the USA. Running...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Running Free Enterprises Ltd. has been operting for many years in Canada and the USA. Running Free Enterprises Ltd. is a Canadian Controlled Private Corporation in which Tommy Jones is the sole shareholder. The following income for the fiscal year ended December 31, 2021 has been provided: Note #1: 2021 Canadian Sourced Income: Engineering Consulting Income Net Retail Income (Loss) Taxable Capital Gains Allowable Capital Losses Eligible Dividends from Beaver Corp (Note #1) Non-Eligible Dividends from Lion Ltd (Note #1) Interest income from Long Term Investments Foreign Sourced Income: US Interest Income US Business Income Required: No Carryover of Foreign Business Tax Credits US amounts above are in Canadian Dollars Additional Information: Charitable Donations made during year Non-Eligible Taxable Dividends Paid to Shareholder of Running Free Enterprises Ltd.* Income Tax Installments Before Withholdings Net of Withholding $6,300 $15,000 5% of the shares of Beaver Corp are owned by Running Free Enterprises Ltd. 80% of the shares of Lion Ltd are owned by Running Free Enterprises Ltd. Lion Ltd received a dividend refund from the NERDTOH of: $3,833 NERDTOH - Balance end of year Non-Eligible Dividend Refund for 2020 Net Capital Losses from 2020 The gross revenues and salaries at its permanent establishments were as follows: *- The only shareholder of Runing Free Enterparises Ltd is Tommy Jones (Individual) 100% shareholder Balances of Loss Pools and other accounts from 2020: ERDTOH - Balance end of year Eligible Dividend Refund for 2020 Saskatchewan US TOTAL Gross Sales $1,060,000 $170,000 $1,230,000 Allocation of Annual Business Limit for Small Business Deduction: $ to Running Free Enterprises Ltd. $ to Other Associated Corps Total $5,355 $12,750 $100,000 $400,000 $500,000 Office Supplies Exp $38,000 $176,000 ($1,000) $8,000 ($2,000) $5,700 $8,000 $7,000 $2,000 $40,000 $ Withheld $945 $2,250 $13,000 $12,000 $23,000 $0 $0 $45,000 $32,000 $9,000 Salaries $460,000 $59,000 $519,000 1) Use Section 3 Ordering to determine Net Income for Tax Purposes. 2) Complete a T2 Return and any other related schedules for Running Free Enterprises Ltd. calculating the corporation's tax refund or balance unpaid. Assume that the taxpayer wishes to minimize total taxes payable and that the Saskatchewan Corporation Tax Rate is 1% for 2021. 3) Show and submit all calculations Running Free Enterprises Ltd. has been operting for many years in Canada and the USA. Running Free Enterprises Ltd. is a Canadian Controlled Private Corporation in which Tommy Jones is the sole shareholder. The following income for the fiscal year ended December 31, 2021 has been provided: Note #1: 2021 Canadian Sourced Income: Engineering Consulting Income Net Retail Income (Loss) Taxable Capital Gains Allowable Capital Losses Eligible Dividends from Beaver Corp (Note #1) Non-Eligible Dividends from Lion Ltd (Note #1) Interest income from Long Term Investments Foreign Sourced Income: US Interest Income US Business Income Required: No Carryover of Foreign Business Tax Credits US amounts above are in Canadian Dollars Additional Information: Charitable Donations made during year Non-Eligible Taxable Dividends Paid to Shareholder of Running Free Enterprises Ltd.* Income Tax Installments Before Withholdings Net of Withholding $6,300 $15,000 5% of the shares of Beaver Corp are owned by Running Free Enterprises Ltd. 80% of the shares of Lion Ltd are owned by Running Free Enterprises Ltd. Lion Ltd received a dividend refund from the NERDTOH of: $3,833 NERDTOH - Balance end of year Non-Eligible Dividend Refund for 2020 Net Capital Losses from 2020 The gross revenues and salaries at its permanent establishments were as follows: *- The only shareholder of Runing Free Enterparises Ltd is Tommy Jones (Individual) 100% shareholder Balances of Loss Pools and other accounts from 2020: ERDTOH - Balance end of year Eligible Dividend Refund for 2020 Saskatchewan US TOTAL Gross Sales $1,060,000 $170,000 $1,230,000 Allocation of Annual Business Limit for Small Business Deduction: $ to Running Free Enterprises Ltd. $ to Other Associated Corps Total $5,355 $12,750 $100,000 $400,000 $500,000 Office Supplies Exp $38,000 $176,000 ($1,000) $8,000 ($2,000) $5,700 $8,000 $7,000 $2,000 $40,000 $ Withheld $945 $2,250 $13,000 $12,000 $23,000 $0 $0 $45,000 $32,000 $9,000 Salaries $460,000 $59,000 $519,000 1) Use Section 3 Ordering to determine Net Income for Tax Purposes. 2) Complete a T2 Return and any other related schedules for Running Free Enterprises Ltd. calculating the corporation's tax refund or balance unpaid. Assume that the taxpayer wishes to minimize total taxes payable and that the Saskatchewan Corporation Tax Rate is 1% for 2021. 3) Show and submit all calculations
Expert Answer:
Related Book For
Posted Date:
Students also viewed these law questions
-
A bakery with a December 31 st year end purchased new equipment on October 31 st 2000 for $10,000. This was their first equipment purchase. Required: What are the tax consequences if the equipment is...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
What is the result of the following? A. [Natural History, Science] B. [Natural History, Science, Art] C. The code does not compile. D. The code compiles but throws an exception at runtime. } import...
-
Everett Co. was organized on July 1, 2019. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown as follows. Instructions (a) Journalize...
-
Compute the missing amount in the accounting equation for each entity from the financial information presented: Liabilities Equity $50,000 32,000 Assets New Rock Gas DJ Video Rentals Comer Grocery...
-
What are the two types of activities that pertain to completing the audit?
-
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Silven produces two models of cell phones with the following expected activity...
-
The government is issuing $100 million in 10 year debt and receives the following bids. $25 million is reserved for non-competitive tenders. At what yield will the non-competitive tenders be issued...
-
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Required: 1. Compute the company's margin of safety. 2. Compute...
-
Sandia corporation is considering two mutually exclusive projects. For our purposes, we will call them projects A and B. Project A is expected to cost $54,655, and project B is expected to cost...
-
If a project costs $467,384, and has the cash flows outlined in the table below, what is this project's payback period in years (use two decimal places in your response)? Year 1 10,644 Year 2 111,939...
-
Calculate balance sheet financial analysis the : Current Ratio , Working Capital Leverage,A/R Turndays, Inventory Turndays, and Accounts payable turnover using balance sheet. Table A Condensed Income...
-
QUESTION 2: 20 points (2 for each part), Fill in Blanket (1) It's important for those using traditional and social media marketing tactics to be cognizant of the associated with the campaign's...
-
Participation and Teaching Assistanship. Attached below is the material on this subject. Please help me answer the question stated below.? PLANNING Planning is an integral part of successful...
-
1.. You are standing 10 meters from a light source. Then, you back away from the light source until you are 20 meters away from it. From your perspective, what has happened to the intensity of the...
-
In Exercises delete part of the domain so that the function that remains is one-to-one. Find the inverse function of the remaining function and give the domain of the inverse function. f(x) = 16x4 -3...
-
"No, that's okay, Bea. I'll write that memo this weekend and send it to Mr. Fielder. You go on home." 1 "Are you sure, Chuck? I don't mind staying a while longer." "Thanks, Bea, but you've already...
-
A former Merrill Lynch executive organized IPOC in 2000 after the Bermuda government issued a license to the company to operate as a mutual fund. Three years later, after Bermuda regulatory...
-
In late 2005, Deloitte's Navistar audit for the fiscal year ending October 31, 2005, was nearing completion when the audit engagement partner took a "mysterious medical leave"2 and was replaced....
-
If w 0 = 0.5 kip/ft, determine the maximum bending stress in the beam. Wo 12 ft. 12 ft- 8 in. 0.30 in. 0.3 in.- 10 in. 0.30 in.
-
Determine the absolute maximum bending stress in the tubular shaft if d i = 160 mm and d o = 200 mm. A 15 kN/m 60 kNm 3 m 1 m- do
-
The tubular shaft is to have a cross section such that its inner diameter and outer diameter are related by d i = 0.8d o . Determine these required dimensions if the allowable bending stress is ...
Study smarter with the SolutionInn App