Assignment Problem Thirteen - 5 (Comprehensive Corporate Tax Payable With CCA) Oland Ltd. is a Canadian controlled private corporation with a December 31 year end. For the year ending December 31, 2020, the Income Statement of the company, prepared in accor dance with generally accepted accounting principles, is as follows: $1,625,986 ($ 776,257) (394,672) 125,489) 27000) Revenues Expenses Cost Of Goods Sold Selling And Administrative Costs Amortization Expense Charitable Donations Operating Incomo Gain On Sale Of Property Loss On Sale Of Vehicles Gain On Sale Of Investments Dividends Received (See Note) Net Income Before Taxes (1,323,418) $ 302,568 on January 1, 2020, the company had the following UCC balances Class 1 Class B $582,652 Class 10 575.267 75.348 Class 13 88.600 Class 14.1 NII 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, 2020, 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, S646,400 for the building and $50,000 for the land The old building is replaced on February 15, 2020, 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 tate. 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 2020, Class assets were acquired at a cost of $226,000. Class 8 assets with a capital cost of $185.000 were sold for $210,000. These Class 8 assets were paintings by Canadian artists and each was sold for an amount in excess of its cost. The accountant had $ 153,600 ( 55,000) 11.000 123,400 233,000 $ 535 568 13. At the beginning of 2020, Oland had a $23,000 net capital loss carry forward 1/211546,000 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 2020. 14. All of Oland's Taxable income will be allocated to a province, 15. It has been determined that Oland has $300,289 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 M&P deduction 16. For 2019, Oland and its associated companies had combined ADJUSTED Aggregate Investment Income of $48,900. Their Taxable Capital Employeo in Canada totaled $8,900,000 for 2019 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, 2020. Include in your solution the January 1, 2021, UCC balance for each CCA class B. Determine Oland's Part 1 Tax Payable for the year ending December 31, 2020 C. Determine the refundable portion of Oland's Part 1 Tax Payable for 2020 Determine Oland's Part IV Tax Payable for the 2020 E Determine the December 31, 2020, balance in Oland's GRIP F Determine the December 31, 2020, balances in Oland's Eligible RDTOH and Non-Eligit RDTOH Note The components of the dividends received are as follows: $ 62,300 Eligible Dividends From Canadian Public Companies Non-Eligible Dividends From 80 Percent Owned Subsidiary (The Subsidiary Received A Dividend Retund of 515 000 From Its Non Eligible RDTOH) Non-Eligible Dividends From Wholly Owned Subsidiary (No Dividend Refundi Total Dividends Received 48,000 13.100 $123.400 Oland is associated with both of these companies. The two subsidiaries have each been allocated $125,000 of the small business deduction's annual business limit. The remaining $250,000 has been allocated to Oland G Determine Oland's dividend refund for 2020, separately identifying the refund related eligible dividends and the refund related to non eligible dividends H Determine Oland's net federal Tax Payable for 2020 Other Information: 1 Selling And Administrative Costs include $22.490 in business meals and entertainment 2. Selling And Administrative Costs includes interest on late income tax instalments of $1,240 and on late municipal tax payments of $625 3. Selling And Administrative Costs includes bond discount amortization of $3,850 4. During 2020, Oland Ltd. acquired a competing business at a price that included goodwill of $110,400. For accounting purposes, there is no impairment or write-down of the goodwill in 2020 5. Selling And Administrative Costs include membership fees for several employees in a local golf and country club. These fees total $7285. 6. As the company expects to issue more shares during 2020, it made a number of amend- ments to its articles of incorporation and included the legal costs in Selling And Administra- tive Costs. These costs totaled $11,482 not amortized them to accounting purposes as he could not determine an estimated useful lite. Class 3 contains a arge number of assets at the end of 2020 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 pro ceeds of disposition armounted to 543,000. The net book value of these assets was $98,000 The Class 13 balance relates to a single lease that commenced on January 1, 2015. 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, 2017 an additional $44.800 was spent on further improvements 8. It is Oland's policy to deduct maximum amounts of CCA 9. During 2020, 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 amortize this balance because it believes the work has an unlimited life. 10. Investments were sold during the year for $126,000. The adjusted cost base of these invest- ments was $115,000. 11. On January 1, 2020, Oland had the following balances: Eligible ROTOH $ 39,660 NI Non-Eligible RDTOH $162,345 GRIP During 2019, Oland designated $12,350 of its dividends as eligible 12. During 2020, Oland paid $42,300 in dividends. Of this total, $26,300 were designated as eligible Assignment Problem Thirteen - 5 (Comprehensive Corporate Tax Payable With CCA) Oland Ltd. is a Canadian controlled private corporation with a December 31 year end. For the year ending December 31, 2020, the Income Statement of the company, prepared in accor- dance with generally accepted accounting principles, is as follows: $1,625,986 ($ 776,257) ( 394,672) ( 125,489) ( 27,000) Revenues Expenses Cost Of Goods Sold Selling And Administrative Costs Amortization Expense Charitable Donations Operating Income Gain On Sale Of Property Loss On Sale Of Vehicles Gain On Sale Of Investments Dividends Received (See Note) Net Income Before Taxes (1,323,418) $ 302,568 $ 153,600 55,000) 11,000 123,400 233,000 $ 535,568 Note The components of the dividends received are as follows: $ 62,300 Eligible Dividends From Canadian Public Companies Non-Eligible Dividends From 80 Percent Owned Subsidiary (The Subsidiary Received A Dividend Refund Of $15,000 From Its Non-Eligible RDTOH) Non-Eligible Dividends From Wholly Owned Subsidiary (No Dividend Refund) Total Dividends Received 48,000 13,100 $123,400 Oland is associated with both of these companies. The two subsidiaries have each been allocated $125,000 of the small business deduction's annual business limit. The remaining $250,000 has been allocated to Oland. Other Information: 1. Selling And Administrative Costs include $22.490 in business meals and entertainment. 2. Selling And Administrative Costs includes interest on late income tax instalments of $1,240 and on late municipal tax payments of $625. 3. Selling And Administrative Costs includes bond discount amortization of $3,850. 4. During 2020, Oland Ltd. acquired a competing business at a price that included goodwill of $110,400. For accounting purposes, there is no impairment or write-down of the goodwill in 2020 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 2020, it made a number of amend- ments to its articles of incorporation and included the legal costs in Selling And Administra- tive Costs. These costs totaled $11,482 On January 1, 2020, the company had the following UCC balances: Class 1 $582,652 Class 8 575,267 Class 10 75,348 Class 13 88,600 Class 14.1 Nil 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, 2020, 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, 2020, 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 2020, 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. These Class 8 assets were paintings by Canadian artists, and each was sold for an amount in excess of its cost. The accountant had not amortized them for accounting purposes as he could not determine an estimated useful life. Class 8 contains a large number of assets at the end of 2020. 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 pro- ceeds of disposition amounted to $43,000. The net book value of these assets was $98.000. The Class 13 balance relates a single lease that commenced on January 1, 2015. 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, 2017, an additional $44,800 was spent on further improvements. 8. It is Oland's policy to deduct maximum amounts of CCA. 9. During 2020, 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 amortize this balance because it believes the work has an unlimited life. 10. Investments were sold during the year for $126,000. The adjusted cost base of these invest- ments was $115,000. 11. On January 1, 2020, Oland had the following balances: Eligible RDTOH $ 39,660 Non-Eligible RDTOH Nil GRIP $162,345 During 2019, Oland designated $12,350 of its dividends as eligible. 12. During 2020, Oland paid $42,300 in dividends. Of this total, $26,300 were designated as eligible. 13. At the beginning of 2020, Oland had a $23,000 net capital loss carry forward f(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 2020. 14. All of Oland's Taxable income will be allocated to a province. 15. It has been determined that Oland has $300,289 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 M&P deduction. 16. For 2019, Oland and its associated companies had combined ADJUSTED Aggregate Investment Income of $48,900. Their Taxable Capital Employed in Canada totaled $8,900,000 for 2019. 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, 2020. Include in your solution the January 1, 2021, UCC balance for each CCA class. B. Determine Oland's Part I Tax Payable for the year ending December 31, 2020. . Determine the refundable portion of Oland's Part I Tax Payable for 2020. D. Determine Oland's Part IV Tax Payable for the 2020. E. Determine the December 31, 2020, balance in Oland's GRIP. F Determine the December 31, 2020, balances in Oland's Eligible RDTOH and Non-Eligible RDTOH G. Determine Oland's dividend refund for 2020, separately identifying the refund related to eligible dividends and the refund related to non-eligible dividends. H. Determine Oland's net federal Tax Payable for 2020. Assignment Problem Thirteen - 5 (Comprehensive Corporate Tax Payable With CCA) Oland Ltd. is a Canadian controlled private corporation with a December 31 year end. For the year ending December 31, 2020, the Income Statement of the company, prepared in accor dance with generally accepted accounting principles, is as follows: $1,625,986 ($ 776,257) (394,672) 125,489) 27000) Revenues Expenses Cost Of Goods Sold Selling And Administrative Costs Amortization Expense Charitable Donations Operating Incomo Gain On Sale Of Property Loss On Sale Of Vehicles Gain On Sale Of Investments Dividends Received (See Note) Net Income Before Taxes (1,323,418) $ 302,568 on January 1, 2020, the company had the following UCC balances Class 1 Class B $582,652 Class 10 575.267 75.348 Class 13 88.600 Class 14.1 NII 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, 2020, 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, S646,400 for the building and $50,000 for the land The old building is replaced on February 15, 2020, 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 tate. 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 2020, Class assets were acquired at a cost of $226,000. Class 8 assets with a capital cost of $185.000 were sold for $210,000. These Class 8 assets were paintings by Canadian artists and each was sold for an amount in excess of its cost. The accountant had $ 153,600 ( 55,000) 11.000 123,400 233,000 $ 535 568 13. At the beginning of 2020, Oland had a $23,000 net capital loss carry forward 1/211546,000 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 2020. 14. All of Oland's Taxable income will be allocated to a province, 15. It has been determined that Oland has $300,289 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 M&P deduction 16. For 2019, Oland and its associated companies had combined ADJUSTED Aggregate Investment Income of $48,900. Their Taxable Capital Employeo in Canada totaled $8,900,000 for 2019 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, 2020. Include in your solution the January 1, 2021, UCC balance for each CCA class B. Determine Oland's Part 1 Tax Payable for the year ending December 31, 2020 C. Determine the refundable portion of Oland's Part 1 Tax Payable for 2020 Determine Oland's Part IV Tax Payable for the 2020 E Determine the December 31, 2020, balance in Oland's GRIP F Determine the December 31, 2020, balances in Oland's Eligible RDTOH and Non-Eligit RDTOH Note The components of the dividends received are as follows: $ 62,300 Eligible Dividends From Canadian Public Companies Non-Eligible Dividends From 80 Percent Owned Subsidiary (The Subsidiary Received A Dividend Retund of 515 000 From Its Non Eligible RDTOH) Non-Eligible Dividends From Wholly Owned Subsidiary (No Dividend Refundi Total Dividends Received 48,000 13.100 $123.400 Oland is associated with both of these companies. The two subsidiaries have each been allocated $125,000 of the small business deduction's annual business limit. The remaining $250,000 has been allocated to Oland G Determine Oland's dividend refund for 2020, separately identifying the refund related eligible dividends and the refund related to non eligible dividends H Determine Oland's net federal Tax Payable for 2020 Other Information: 1 Selling And Administrative Costs include $22.490 in business meals and entertainment 2. Selling And Administrative Costs includes interest on late income tax instalments of $1,240 and on late municipal tax payments of $625 3. Selling And Administrative Costs includes bond discount amortization of $3,850 4. During 2020, Oland Ltd. acquired a competing business at a price that included goodwill of $110,400. For accounting purposes, there is no impairment or write-down of the goodwill in 2020 5. Selling And Administrative Costs include membership fees for several employees in a local golf and country club. These fees total $7285. 6. As the company expects to issue more shares during 2020, it made a number of amend- ments to its articles of incorporation and included the legal costs in Selling And Administra- tive Costs. These costs totaled $11,482 not amortized them to accounting purposes as he could not determine an estimated useful lite. Class 3 contains a arge number of assets at the end of 2020 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 pro ceeds of disposition armounted to 543,000. The net book value of these assets was $98,000 The Class 13 balance relates to a single lease that commenced on January 1, 2015. 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, 2017 an additional $44.800 was spent on further improvements 8. It is Oland's policy to deduct maximum amounts of CCA 9. During 2020, 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 amortize this balance because it believes the work has an unlimited life. 10. Investments were sold during the year for $126,000. The adjusted cost base of these invest- ments was $115,000. 11. On January 1, 2020, Oland had the following balances: Eligible ROTOH $ 39,660 NI Non-Eligible RDTOH $162,345 GRIP During 2019, Oland designated $12,350 of its dividends as eligible 12. During 2020, Oland paid $42,300 in dividends. Of this total, $26,300 were designated as eligible Assignment Problem Thirteen - 5 (Comprehensive Corporate Tax Payable With CCA) Oland Ltd. is a Canadian controlled private corporation with a December 31 year end. For the year ending December 31, 2020, the Income Statement of the company, prepared in accor- dance with generally accepted accounting principles, is as follows: $1,625,986 ($ 776,257) ( 394,672) ( 125,489) ( 27,000) Revenues Expenses Cost Of Goods Sold Selling And Administrative Costs Amortization Expense Charitable Donations Operating Income Gain On Sale Of Property Loss On Sale Of Vehicles Gain On Sale Of Investments Dividends Received (See Note) Net Income Before Taxes (1,323,418) $ 302,568 $ 153,600 55,000) 11,000 123,400 233,000 $ 535,568 Note The components of the dividends received are as follows: $ 62,300 Eligible Dividends From Canadian Public Companies Non-Eligible Dividends From 80 Percent Owned Subsidiary (The Subsidiary Received A Dividend Refund Of $15,000 From Its Non-Eligible RDTOH) Non-Eligible Dividends From Wholly Owned Subsidiary (No Dividend Refund) Total Dividends Received 48,000 13,100 $123,400 Oland is associated with both of these companies. The two subsidiaries have each been allocated $125,000 of the small business deduction's annual business limit. The remaining $250,000 has been allocated to Oland. Other Information: 1. Selling And Administrative Costs include $22.490 in business meals and entertainment. 2. Selling And Administrative Costs includes interest on late income tax instalments of $1,240 and on late municipal tax payments of $625. 3. Selling And Administrative Costs includes bond discount amortization of $3,850. 4. During 2020, Oland Ltd. acquired a competing business at a price that included goodwill of $110,400. For accounting purposes, there is no impairment or write-down of the goodwill in 2020 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 2020, it made a number of amend- ments to its articles of incorporation and included the legal costs in Selling And Administra- tive Costs. These costs totaled $11,482 On January 1, 2020, the company had the following UCC balances: Class 1 $582,652 Class 8 575,267 Class 10 75,348 Class 13 88,600 Class 14.1 Nil 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, 2020, 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, 2020, 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 2020, 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. These Class 8 assets were paintings by Canadian artists, and each was sold for an amount in excess of its cost. The accountant had not amortized them for accounting purposes as he could not determine an estimated useful life. Class 8 contains a large number of assets at the end of 2020. 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 pro- ceeds of disposition amounted to $43,000. The net book value of these assets was $98.000. The Class 13 balance relates a single lease that commenced on January 1, 2015. 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, 2017, an additional $44,800 was spent on further improvements. 8. It is Oland's policy to deduct maximum amounts of CCA. 9. During 2020, 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 amortize this balance because it believes the work has an unlimited life. 10. Investments were sold during the year for $126,000. The adjusted cost base of these invest- ments was $115,000. 11. On January 1, 2020, Oland had the following balances: Eligible RDTOH $ 39,660 Non-Eligible RDTOH Nil GRIP $162,345 During 2019, Oland designated $12,350 of its dividends as eligible. 12. During 2020, Oland paid $42,300 in dividends. Of this total, $26,300 were designated as eligible. 13. At the beginning of 2020, Oland had a $23,000 net capital loss carry forward f(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 2020. 14. All of Oland's Taxable income will be allocated to a province. 15. It has been determined that Oland has $300,289 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 M&P deduction. 16. For 2019, Oland and its associated companies had combined ADJUSTED Aggregate Investment Income of $48,900. Their Taxable Capital Employed in Canada totaled $8,900,000 for 2019. 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, 2020. Include in your solution the January 1, 2021, UCC balance for each CCA class. B. Determine Oland's Part I Tax Payable for the year ending December 31, 2020. . Determine the refundable portion of Oland's Part I Tax Payable for 2020. D. Determine Oland's Part IV Tax Payable for the 2020. E. Determine the December 31, 2020, balance in Oland's GRIP. F Determine the December 31, 2020, balances in Oland's Eligible RDTOH and Non-Eligible RDTOH G. Determine Oland's dividend refund for 2020, separately identifying the refund related to eligible dividends and the refund related to non-eligible dividends. H. Determine Oland's net federal Tax Payable for 2020