1. 1. For each taxation year, determine the following:
2. 
3. 
4. 
5. (a) Net income (loss) for tax purposes; 
6. (b) Taxable income; 
7. (c) Federal and provincial tax payable.

 

2. Explain to David the tax implications for his transactions, what he can claim for tax purposes and what he ca not claim.

3. Explain to David if he should file corporate tax return for the 2020 taxation year.

4. Prepare T2 for each taxation year.

Transcribed Image Text:

Revenue Incorporation costs Administrative and Marketing Expenses Rent Expense Website cost T2 Foor the year ended Dec/30/2020 Depreciation on laptop Depreciation on furniture Total expenses Net income (Loss) 0 491.4 1,498.85 1,500 413.2 232.29 60 4,195.74 -4,195.74 Revenue Incorporation costs Administrative and Marketing Expenses Rent Expense Website cost T2 Foor the year ended Dec/30/2020 Depreciation on laptop Depreciation on furniture Total expenses Net income (Loss) 0 491.4 1,498.85 1,500 413.2 232.29 60 4,195.74 -4,195.74

Answer rating: 100% (QA)

1 a To determine the net income loss for tax purposes for each taxation year we need to consider the following information b To determine the taxable income for each taxation year we need to calculate ... View the full answer