Assignment

Communication $($Weight: $10\%)$

In $2024,$ Natasha Dale had employment income of $$105,000$ from a CCPC that has annual gross revenue of $$300$ million.

She was granted access to a stock option plan. Following are the key information related to stock options.

$\backslash$table$[[$Grant price per stok,$$,20\mathrm{.}00],[$FMV at grant date,$$,27\mathrm{.}00],[$Exercise price per stock,$$,25\mathrm{.}00],[$FMV at exercise date,$$,28\mathrm{.}00],[$FMV at sales date,$$,30\mathrm{.}00],[$No$.$ of shares granted,,$15,000],[$Option grant date:,November $202],[$Option exercise date:,March $2022],[$Selling date of the stocks under option:,May $2024]]$

Natasha runs a business under the name Prime Co$.$ Prime Co$.$ is a sole proprietorship business which sells a variety of products. The books and records are maintained on a cash basis. In $2024,$ the business has cash sales of $$248,000.$ In addition, Prime Co$.$ received advances of $$5,700$ for which the goods will be delivered next year. There are credit sales of $$55,000.$ Prime Co$.$ estimates that $$3,200$ of the year$-$end receivables are doubtful of collection.

On December $31,2023,$ Prime Co$.$ estimates that $$6,100$ of its ending accounts receivable are doubtful collection. For $2023,$ an allowance for doubtful debts is established for this amount for accounting purposes. For income tax purposes, a doubtful debt reserve of $$5,500$ is deducted under ITA. During the $2024$ fiscal period, $$7,800$ in accounts receivable are written off uncollectible. At December $31,2024,$ estimated doubtful accounts total $$5,300.$

Natasha, has a building which she uses for business purposes exclusively. She purchased the building in $2018$ for $$587,000,$ with the estimated value of the land at the time being $$165,000$ and the remaining amount attributable to the building. Prime Co$.$ elected the building in class $1.$ On January $1,2024,$ the UCC of the building is $$365,000.$

During $2024,$ Prime Co$.$ sold all the furniture for $$28,000$ which was purchased for $$49,000.$ The beginning UCC of furniture is $$25,000.$ Prime Co$.$ purchased new furniture for $$81,000.$

Other properties purchased, which are related to this business, in $2024$ are as follows:

$\backslash$table$[[$New computer,$$4,200$