During 2019, its first year of operation, John's Scent Shoppe has cash sales of $105,000, as...

 

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During 2019, its first year of operation, John's Scent Shoppe has cash sales of $105,000, as well as account sales of $52,000. Of the cash sales, $12,000 represents payments for goods that will be delivered during 2020. At December 31, 2019, $17,000 of the accounts receivable remain uncollected. John identified $1,700 of the accounts that he considers will be uncollectible. By what amount will the 2019 net business income of John's Scent Shoppe be increased by the preceding information? Input full solution in Excel Answer Template. In the answer below, input the amount business income increases by. Ken's Kouriers is an unincorporated business which provides courier services within the city of Halifax. It has a taxation year that ends on December 31 and plans to deduct the maximum CCA each year. Ken's Kouriers began operating on May 1, 2017 by acquiring a new building at a total cost of $326,000. Of this total, $53,000 is allocated to the land on which the building is situated. As it will be used 100 percent for non-residential purposes other than manufacturing, it is allocated to a separate Class 1. Furnishings for the building are acquired on June 1, 2017 at a cost of $85,000. Also on June 1, 2017, the business acquires 12 vehicles to be used by its couriers. The cost of these vehicles is $23,000 each for a total of $276,000. During 2018, the business trades in 5 of its old vehicles for more fuel efficient vehicles. The replacement vehicles cost $27,000 per vehicle. The company receives a trade-in allowance of $16,000 for each old vehicle. Also during 2018, the Company acquires a luxury vehicle to be used by Ken, the owner of the business. The cost of this vehicle is $103,000. During 2019, Ken and five of his drivers are charged with smuggling counterfeit goods. Ken's Kouriers is closed down on December 31, 2019 and, before closing, Ken sells the assets as follows: • The building is sold for $342,000, with $53,000 of this amount being attributed to the land. • The remaining 7 vehicles that were purchased in 2017 are sold for $73,000. The kvehicles that were acquired in 2018 are sold for $62,500. The amount received for each vehicle was less than its capital cost. • The furniture is sold for $12,300. The luxury vehicle is sold for S63,800. Required: Determine the maximum CCA that can be taken in each of the years 2017 through 2019. In your calculations, include and identify the UCC balances for January 1, 2018, January 1, 2019, and January 1, 2020. In addition, indicate any tax effects resulting from the 2018 and 2019 dispositions. Ignore GST/HST/PST considerations. Input your solution on the Excel Answer Template. During 2019, its first year of operation, John's Scent Shoppe has cash sales of $105,000, as well as account sales of $52,000. Of the cash sales, $12,000 represents payments for goods that will be delivered during 2020. At December 31, 2019, $17,000 of the accounts receivable remain uncollected. John identified $1,700 of the accounts that he considers will be uncollectible. By what amount will the 2019 net business income of John's Scent Shoppe be increased by the preceding information? Input full solution in Excel Answer Template. In the answer below, input the amount business income increases by. Ken's Kouriers is an unincorporated business which provides courier services within the city of Halifax. It has a taxation year that ends on December 31 and plans to deduct the maximum CCA each year. Ken's Kouriers began operating on May 1, 2017 by acquiring a new building at a total cost of $326,000. Of this total, $53,000 is allocated to the land on which the building is situated. As it will be used 100 percent for non-residential purposes other than manufacturing, it is allocated to a separate Class 1. Furnishings for the building are acquired on June 1, 2017 at a cost of $85,000. Also on June 1, 2017, the business acquires 12 vehicles to be used by its couriers. The cost of these vehicles is $23,000 each for a total of $276,000. During 2018, the business trades in 5 of its old vehicles for more fuel efficient vehicles. The replacement vehicles cost $27,000 per vehicle. The company receives a trade-in allowance of $16,000 for each old vehicle. Also during 2018, the Company acquires a luxury vehicle to be used by Ken, the owner of the business. The cost of this vehicle is $103,000. During 2019, Ken and five of his drivers are charged with smuggling counterfeit goods. Ken's Kouriers is closed down on December 31, 2019 and, before closing, Ken sells the assets as follows: • The building is sold for $342,000, with $53,000 of this amount being attributed to the land. • The remaining 7 vehicles that were purchased in 2017 are sold for $73,000. The kvehicles that were acquired in 2018 are sold for $62,500. The amount received for each vehicle was less than its capital cost. • The furniture is sold for $12,300. The luxury vehicle is sold for S63,800. Required: Determine the maximum CCA that can be taken in each of the years 2017 through 2019. In your calculations, include and identify the UCC balances for January 1, 2018, January 1, 2019, and January 1, 2020. In addition, indicate any tax effects resulting from the 2018 and 2019 dispositions. Ignore GST/HST/PST considerations. Input your solution on the Excel Answer Template.

Answer rating: 100% (QA)

Cash Sales 105000 Credit Sales 52000 Less Advance received aga... View the full answer