You have been asked to prepare a schedule reconciling the accounting net income to income for tax
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The controller of Video Madness Inc., a Canadian public corporation, has prepared the accounting income statement for the year ended April 30, 2020: Sales. Cost of sales Administrative expenses 111,850 VIDEO MADNESS INC. INCOME STATEMENT FOR THE YEAR ENDED APRIL 30, 2020 Operating income Other income and expenses Other Information Provision for income taxes Net income. (1) Included in the calculation of "Administrative expenses": (a) Interest on late income tax payments (b) Amortization (maximum capital cost allowance of $149,500) (c) Club dues for the local Country Club Federal political contributions (e) Donations to registered charities $523,000 185,000 $ (a) Non-capital losses (b) Net capital losses (realized in 2014) $995,000 (708,000) $287,000 55,000 $342,000 (102,000) $240,000 (e) Loss on sale of investments held as capital property purchased for $85,000 and sold for $75,000 (3) Loss carryforwards from 2019 are: (f) Property tax with respect to vacant land not being used in the course of the business (8) Life insurance premium with respect to the president (the company is the beneficiary; not required for (2) Included in the calculation of "Other income and expenses": (a) Landscaping of grounds around new premise financing). (b) Fees paid with respect to the investigation of a suitable site for the company's manufacturing plant 435 104,900 1,750 2,500 22,500 (c) Dividends received from taxable Canadian corporation (d) Gain from the sale of another piece of land, used in the business, sold for $200,000 in March (purchased for $73,800).. 3,000 1,950 ITA: 9-20, 38-56, 110.1-112, 111(4), 111 111(5.1), 249(4) 4,800 5,500 42,800 126,200. 10,000 73,800 50,000 01 2000 You have been asked to prepare a schedule reconciling the accounting net income to income for tax purposes and taxable income. Indicate the appropriate statutory reference for your inclusions or exclusions. The controller of Video Madness Inc., a Canadian public corporation, has prepared the accounting income statement for the year ended April 30, 2020: Sales. Cost of sales Administrative expenses 111,850 VIDEO MADNESS INC. INCOME STATEMENT FOR THE YEAR ENDED APRIL 30, 2020 Operating income Other income and expenses Other Information Provision for income taxes Net income. (1) Included in the calculation of "Administrative expenses": (a) Interest on late income tax payments (b) Amortization (maximum capital cost allowance of $149,500) (c) Club dues for the local Country Club Federal political contributions (e) Donations to registered charities $523,000 185,000 $ (a) Non-capital losses (b) Net capital losses (realized in 2014) $995,000 (708,000) $287,000 55,000 $342,000 (102,000) $240,000 (e) Loss on sale of investments held as capital property purchased for $85,000 and sold for $75,000 (3) Loss carryforwards from 2019 are: (f) Property tax with respect to vacant land not being used in the course of the business (8) Life insurance premium with respect to the president (the company is the beneficiary; not required for (2) Included in the calculation of "Other income and expenses": (a) Landscaping of grounds around new premise financing). (b) Fees paid with respect to the investigation of a suitable site for the company's manufacturing plant 435 104,900 1,750 2,500 22,500 (c) Dividends received from taxable Canadian corporation (d) Gain from the sale of another piece of land, used in the business, sold for $200,000 in March (purchased for $73,800).. 3,000 1,950 ITA: 9-20, 38-56, 110.1-112, 111(4), 111 111(5.1), 249(4) 4,800 5,500 42,800 126,200. 10,000 73,800 50,000 01 2000 You have been asked to prepare a schedule reconciling the accounting net income to income for tax purposes and taxable income. Indicate the appropriate statutory reference for your inclusions or exclusions.
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Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
Posted Date:
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