4:42 coursehero.com will in either 2014 or 2015. 3. Other Expenses includes bond discount amortization of $3,850. 4. Other Expenses includes interest on late income tax instalments of $1,240 and on late municipal tax payments of $625. 5. Selling And Administrative Costs include membership fees for several employees in a local golf and country club. These fees total $7,285. 6. As the Company expects to issue more shares during 2015, it made a number of amend- ments to its articles of incorporation and included the legal costs in Other Expenses. These costs totalled $11,482. 7. On January 1, 2015, the Company had the following UCC balances: Class 1 $582,652 Class 8 575,267 Class 10 75,348 Class 13 88,600 The Class 1 balance relates to a single real property acquired in 2000 at a cost of $750,000. It is estimated that the value of the land at this time was $50,000. On February 1, 2015, this property is sold for $850,000. It is estimated that, at this time, the value of the land has increased to $80,000. In the accounting records, this real property was carried at $696,400, $646,400 for the building and $50,000 for the land. The old building is replaced on February 15, 2015 with a new building acquired at a cost of $923,000 of which $86,000 is allocated to land. As the building is used more than 90 percent for non-residential purposes, it qualifies for the special 6 percent CCA rate. In order to use this rate, the building is put into a separate CCA class. No elections are made with respect to the replacement of the building. During 2015, Class 8 assets were acquired at a cost of $226,000. Class 8 assets with a capital cost of $185,000 were sold for $210,000. All the Class 8 assets disposed of were sold for an amount in excess of their respective costs. No Class 8 assets were purchased during the year. Class 8 contains a large number of assets at the end of 2015. As the Company has decided to lease all of its vehicles in the future, all of the assets in Class 10 are sold during the year. The capital cost of these assets was $142,000 and the proceeds of disposition amounted to $43,000. The net book value of these assets was $98,000. 730 Chapter 13 Assignment Problems 13- 4 The Class 13 balance relates to a single lease that commenced on January 1, 2010. The lease has an initial term of seven years, with two successive options to renew for three years each. At the inception of the lease, the Company spent $110,000 on leasehold improvements. On January 1, 2012, an additional $44,800 was spent on further improve- ments. 8. It is Oland's policy to deduct maximum amounts of CCA and CEC. 9. During 2015, Oland spends $18,500 landscaping the grounds of its new building. For accounting purposes this was treated as an asset. However, the Company will not amor- tize this balance as it believes the work has an unlimited life. 10. Investments were sold during the year for $126,000. The adjusted cost base of these investments was $115,000. 11. On December 31, 2014, the Company had a balance in its Refundable Dividend Tax On Hand account of $52,460. The Company claimed a dividend refund of $12,800 in its 2014 corporate tax return. 12. At the end of 2014, Oland has a GRIP balance of $162,345. During 2014, the Company designated $12,350 of its dividends paid as eligible. 13. During 2015, Oland paid $42,300 in dividends. Of this total, $26,300 were designated as eligible. 14. At the beginning of 2015, Oland had a $23,000 net capital loss carry forward [(1/2)($46,000)]. It also had a non-capital loss carry forward of $36,400. The Company would like to deduct as much as possible of these two carry overs during 2015. 15. All of Oland's Taxable Income will be allocated to a province. 16. It has been determined that Oland has $193,000 of active business income. Of this total, $43,000 results from manufacturing and processing activity. Because of special rates in the province in which it operates, Oland makes a separate calculation of the manufac turing and processing deduction. Required: Show all of the calculations used to provide the following required information, including those for which the result is nil. A. Determine Oland's minimum Net Income For Tax Purposes and Taxable Income for the year ending December 31, 2015. Include in your solution the January 1, 2016 UCC balance for each class and the January 1, 2016 balance in cumulative eligible capital. B. Determine Oland's Part I federal Tax Payable for the year ending December 31, 2015. C. Determine the December 31, 2015 balance in Oland's Refundable Dividend Tax On Hand account. D. Determine Oland's minimum federal Tax Payable for the year ending December 31, 2015. This should include both Part I and Part IV Tax Payable, net of any dividend refund. E. Determine the December 31, 2015 balance in Oland's GRIP. Assignment Problem Thirteen - 5 (Comprehensive Corporate Tax Payable) B & C Limited is a Canadian controlled private corporation throughout its taxation year ending December 31, 2015. For that year, its Net Income For Tax Purposes and Taxable Income can be calculated as follows