For its 2021 taxation year ending December 31, the condensed Income Statement of Manipee Systems Limited...

  

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For its 2021 taxation year ending December 31, the condensed Income Statement of Manipee Systems Limited (MSL), was as follows: Other Information: Manipee Systems Limited Condensed Income Statement Year Ending December 31, 2021 Revenues Expenses (Excluding Taxes) Accounting Income Before Income Taxes 4. $926,000 (713,000) $213,000 1. The company is a CCPC with all of its shares owned by Ms. Mildred Manipee and her immediate family. There are no associated corporations. The company's taxable capital employed in Canada has never exceeded $10 million. 2. The company's expenses included amortization of $126,000. The company's accountant has calculated maximum CCA for the 2021 year as $138,000. 3. The company's revenues include a gain on the sale of a depreciable property of $27,000. The property had a cost of $109,000, a carrying value (book value) of $105,000 for accounting purposes, and was sold for $132,000. It was not the last property in its CCA class, and the UCC balance in the class at the end of 2021 was positive. Revenues include taxable dividends from taxable Canadian corporations in the amount of $12,000. Adjusted aggregate investment income has never exceeded $50,000. 5. At the beginning of 2021, MSL has a 2019 non-capital loss balance of $126,000, as well as a 2019 net capital loss balance of $22,500. 6. In 2021, the company's Canadian active business income is $156,000. 7. The company had permanent establishments in Ontario and Manitoba and also carried on business 6. In 2021, the company's Canadian active business income is $156,000. 7. The company had permanent establishments in Ontario and Manitoba and also carried on business in the United States. The amount of revenues and salaries in these locations were as follows: Revenues Salaries Ontario $427,000 162,000 Required: Manitoba $310,000 87,000 The business operations in the United States did not make a profit and, as a consequence, there were no foreign income taxes. United States $150,000 26,000 A. Calculate the minimum 2021 net income for tax purposes. B. Calculate the minimum 2021 taxable income. C. Calculate the minimum 2021 Part I income tax payable. For its 2021 taxation year ending December 31, the condensed Income Statement of Manipee Systems Limited (MSL), was as follows: Other Information: Manipee Systems Limited Condensed Income Statement Year Ending December 31, 2021 Revenues Expenses (Excluding Taxes) Accounting Income Before Income Taxes 4. $926,000 (713,000) $213,000 1. The company is a CCPC with all of its shares owned by Ms. Mildred Manipee and her immediate family. There are no associated corporations. The company's taxable capital employed in Canada has never exceeded $10 million. 2. The company's expenses included amortization of $126,000. The company's accountant has calculated maximum CCA for the 2021 year as $138,000. 3. The company's revenues include a gain on the sale of a depreciable property of $27,000. The property had a cost of $109,000, a carrying value (book value) of $105,000 for accounting purposes, and was sold for $132,000. It was not the last property in its CCA class, and the UCC balance in the class at the end of 2021 was positive. Revenues include taxable dividends from taxable Canadian corporations in the amount of $12,000. Adjusted aggregate investment income has never exceeded $50,000. 5. At the beginning of 2021, MSL has a 2019 non-capital loss balance of $126,000, as well as a 2019 net capital loss balance of $22,500. 6. In 2021, the company's Canadian active business income is $156,000. 7. The company had permanent establishments in Ontario and Manitoba and also carried on business 6. In 2021, the company's Canadian active business income is $156,000. 7. The company had permanent establishments in Ontario and Manitoba and also carried on business in the United States. The amount of revenues and salaries in these locations were as follows: Revenues Salaries Ontario $427,000 162,000 Required: Manitoba $310,000 87,000 The business operations in the United States did not make a profit and, as a consequence, there were no foreign income taxes. United States $150,000 26,000 A. Calculate the minimum 2021 net income for tax purposes. B. Calculate the minimum 2021 taxable income. C. Calculate the minimum 2021 Part I income tax payable.

Answer rating: 100% (QA)

a 213000 126000 22500 156000 190500 The companys minimum 2021 net income for tax purposes is 190500 The companys minimum 2021 net income for tax purpo... View the full answer