A public Canadian company has its main operations and head office in Ontario decided to expand west.
Question:
A public Canadian company has its main operations and head office in Ontario decided to expand west. In 2020 the company opened a branch in Alberta. At the year end the company's books included the following:
Ontario Sales Sales | $5,000,000 |
Sales in Alberta | $1,000,000 |
Total labour costs of the company | $2,000,000 |
Labour costs paid in Ontario | $1,500,000 |
Wages in Alberta’s location | $500,000 |
Income from operations in Ontario | $550,000 |
Income from operations in Alberta | $100,000 |
Dividend received from a taxable Canadian corporation | $150,000 |
Required:
A) Calculate the company's net income for tax purposes for 2020.
B) Calculate the company's Federal taxable income, both federal and provincial. (Round all amounts to two decimal places.)
C) Calculate the Part I federal tax liability.
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Old