Calculate net income for tax purpose information from the financial records of thojani Limited is shown below

Calculate net income for tax purpose

 

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information from the financial records of thojani Limited is shown below Net income (accounting) Provision for income taxes Financial accounting expenses include: - Charitable donations - Amortization - Landscaping costs paid -Warranty provision Financial accounting income included: - Eligible dividends from Canadian corporations -Non-eligible dividends from Canadian corporations Accounting gain on the disposition of Class 8 assets 2021 335.000 192,000 10,000 201,000 7,000 3,200 14,000 21,700 8,000 ADDITIONAL INFORMATION: Bhojani Limited received $5,000 in interest from foreign corporations was subject to withholding tax of $1,250. 98% of Bhojani Limited's taxable income is earned in Canada. The opening UCC balance of Class 1 (separate class - 6%) was $540,450. The opening UCC balance of the Class 8 assets (equipment -20%) was $82,300. Due to a moderation plan, the company disposed of all of its Class 8 assets for proceeds $102,000. The net book value of these assets was $94,000 and the capital cost of the assets was $99,000. Bhojani Limited acquired another building for $65,000 and placed it in a separate Class 1 (4% CCA rate). Req: calculate Net Income for tar purposes information from the financial records of thojani Limited is shown below Net income (accounting) Provision for income taxes Financial accounting expenses include: - Charitable donations - Amortization - Landscaping costs paid -Warranty provision Financial accounting income included: - Eligible dividends from Canadian corporations -Non-eligible dividends from Canadian corporations Accounting gain on the disposition of Class 8 assets 2021 335.000 192,000 10,000 201,000 7,000 3,200 14,000 21,700 8,000 ADDITIONAL INFORMATION: Bhojani Limited received $5,000 in interest from foreign corporations was subject to withholding tax of $1,250. 98% of Bhojani Limited's taxable income is earned in Canada. The opening UCC balance of Class 1 (separate class - 6%) was $540,450. The opening UCC balance of the Class 8 assets (equipment -20%) was $82,300. Due to a moderation plan, the company disposed of all of its Class 8 assets for proceeds $102,000. The net book value of these assets was $94,000 and the capital cost of the assets was $99,000. Bhojani Limited acquired another building for $65,000 and placed it in a separate Class 1 (4% CCA rate). Req: calculate Net Income for tar purposes

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To calculate the net income for tax purposes we need to make adjustments to the accounting net incom... View the full answer