Frederic's Designs Ltd. purchased a $250,000 Lexus for Frederic Vanguard's personal use. The Lexus replaced the only other existing company car, a $150,000 BMW, which was purchased in 2017. The BMW, which was sold for $100,000, was used solely by Frederic Vanguard. The BMW was never amortized by Frederic's Designs Ltd. Frederic's Designs Ltd. reported the above transactions as follows:

The $145,000 Gain on Disposition of Tangible Assets consisted of the following:

 

 

Frederic's Designs Ltd. purchased shares in 2018 for a cost of $30,000; in 2019, Frederic's Designs Ltd. sold those shares for $150,000. The capital gain on these shares was $120,000, and Frederic Vanguard credited the capital gain to retained earnings.

computer item acquired on Aug,2019: software: $30,000 hardware:$60,000

How should I include the above info when calculating minimum net business income for tax purpose excluding CCA deduction. Ignore GST/PST/HST implications.

Should I include Membership in Yacht club when calculate home work space cost?

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Lexus Cash Loss on Sale of BMW Cash BMW 250,000 100,000 50,000 250,000 150,000 Lexus Cash Loss on Sale of BMW Cash BMW 250,000 100,000 50,000 250,000 150,000

Answer rating: 100% (QA)

When calculating minimum net business income for tax purposes we typically need to consider only the ... View the full answer