Green Co. and Blue Co. are equal partners in Turquoise Paint. Turquoise Paint had a net...
Fantastic news! We've Found the answer you've been seeking!
Question:
![Green Co. and Blue Co. are equal partners in Turquoise Paint. Turquoise Paint had a net income for tax](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2023/04/642a889f24dab_1680509085626.jpg)
Transcribed Image Text:
Green Co. and Blue Co. are equal partners in Turquoise Paint. Turquoise Paint had a net income for tax purposes this year of $300,000, before deducting capital cost allowance. Green Co. is a CCPC owned by Bob Green. Green Co.'s net income for tax purposes is $200,000. Blue Co. is a CCPC owned by Sally Blue. Blue Co. has suffered net losses the past two years. This year Blue Co. had a loss of $150,000, and the company has non-capital losses of $200,000 which will expire in two years. The capital cost allowance for Turquoise Paint this year is $72,000. Required: Based solely on the facts provided: A) Calculate the partnership net income for tax purposes that Bob would likely prefer to use, and explain why. B) Calculate the partnership net income for tax purposes that Sallywould likely prefer to use, and explain why. A) Partnership net income for tax purposes before CCA CCA Profits for allocation Bob would likely prefer the least profits allowed since Green Co. has taxable income, and 50% of the partnership's profits will be added to Green Co.'s income. B) Partnership net income for tax purposes before CCA CCA Profits for allocation. Sally would Green Co. and Blue Co. are equal partners in Turquoise Paint. Turquoise Paint had a net income for tax purposes this year of $300,000, before deducting capital cost allowance. Green Co. is a CCPC owned by Bob Green. Green Co.'s net income for tax purposes is $200,000. Blue Co. is a CCPC owned by Sally Blue. Blue Co. has suffered net losses the past two years. This year Blue Co. had a loss of $150,000, and the company has non-capital losses of $200,000 which will expire in two years. The capital cost allowance for Turquoise Paint this year is $72,000. Required: Based solely on the facts provided: A) Calculate the partnership net income for tax purposes that Bob would likely prefer to use, and explain why. B) Calculate the partnership net income for tax purposes that Sallywould likely prefer to use, and explain why. A) Partnership net income for tax purposes before CCA CCA Profits for allocation Bob would likely prefer the least profits allowed since Green Co. has taxable income, and 50% of the partnership's profits will be added to Green Co.'s income. B) Partnership net income for tax purposes before CCA CCA Profits for allocation. Sally would Green Co. and Blue Co. are equal partners in Turquoise Paint. Turquoise Paint had a net income for tax purposes this year of $300,000, before deducting capital cost allowance. Green Co. is a CCPC owned by Bob Green. Green Co.'s net income for tax purposes is $200,000. Blue Co. is a CCPC owned by Sally Blue. Blue Co. has suffered net losses the past two years. This year Blue Co. had a loss of $150,000, and the company has non-capital losses of $200,000 which will expire in two years. The capital cost allowance for Turquoise Paint this year is $72,000. Required: Based solely on the facts provided: A) Calculate the partnership net income for tax purposes that Bob would likely prefer to use, and explain why. B) Calculate the partnership net income for tax purposes that Sallywould likely prefer to use, and explain why. A) Partnership net income for tax purposes before CCA CCA Profits for allocation Bob would likely prefer the least profits allowed since Green Co. has taxable income, and 50% of the partnership's profits will be added to Green Co.'s income. B) Partnership net income for tax purposes before CCA CCA Profits for allocation. Sally would
Expert Answer:
Answer rating: 100% (QA)
A Partnership net income for tax purposes that Bob would likely prefer to use Capital Cost Allowance ... View the full answer
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
Posted Date:
Students also viewed these accounting questions
-
A bakery with a December 31 st year end purchased new equipment on October 31 st 2000 for $10,000. This was their first equipment purchase. Required: What are the tax consequences if the equipment is...
-
For the year ending December 31, 2020, the Income Statement of Morland Industries Ltd. (MIL), a Canadian controlled private corporation, prepared in accordance with generally accepted accounting...
-
Sally Corbet is the sole shareholder of Corbet Holdings Ltd. (CHL), a Canadian-controlled private corporation. The corporation holds investments in shares, bonds, and real estate. You have been...
-
On October 1, 2020, Berlin Corp. purchased 250, $ 1,000, 9% bonds for $ 260,000. An additional $ 7,500 was paid for the accrued interest, which is paid semi-annually on December 1 and June 1. The...
-
In 2002, workers at the Swedish National Food Administration discovered that heated, carbohydrate-rich foods, such as french fries, potato chips, and bread, contain alarming levels (0.1 to 4 g/g) of...
-
Wenzel Company sells a single product for $80 per unit. Wenzel Company had the following information for the past six months: Month Total Costs Incurred Units Sold June $29,570 416 July $28,930 388...
-
Claim: 73.6, s = 3.2, n = 26
-
Marienau Suppliers had the following transactions: Mar. 1 Sold merchandise on account to G. Perez $5,000. 20 G. Perez gave a $5,000, 90-day, 6% note to extend time for payment. 30 G. Perez's note is...
-
Hos llege Demo 14 Selber oders of Chovedano shares of the 720 180 Q15 Stormyrohet i det Share on your mon in the com Althove 16 Gondolewa aby py
-
Assume that you are the chairman of the Department of Accountancy at Central Manitoba University. One of the accounting professors in your department, Dr. Smith, has been uniformly regarded by...
-
Pillage Mining is considering which mutually exclusive projects it should undertake, as it has only 600 million to spend. The firm is presented with three different alternatives, each of which...
-
At the Business Level there are a couple main strategies that companies use- Cost Leadership and Differentiation. What is the difference between them? Share some examples of companies or specific...
-
https://youtu.be/c_Eutci7ack After watching the video, what are your thoughts on Power? Would you want to have this Power ? Why would you not want this Power? If you are a manager or want to be a...
-
Find anti derivative of ( 2 t - 4 + 3 ^ ( 1 / 2 ) ) / t ^ ( 1 / 2 )
-
How Adidas is using creative narratives to build brand equity Adidas' outdoor division is drawing on the expertise of its wider athletic business while at the same time flexing its creative muscle to...
-
May I have a word" Alysha Stark popped her head in at the corner office of the Managing Director Mike O' Connor. It's early on a Monday morning. When Alysha, his star Director, starts something this...
-
Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $28 per direct labor-hour, which was calculated using the following budgeted data: Variable manufacturing...
-
A glass manufacturer produces hand mirrors. Each mirror is supposed to meet company standards for such things as glass thickness, ability to reflect, size of handle, quality of glass, color of...
-
Tom, Mary and Chris are partners in the TMC Partnership. Tom is the only partner who is involved in the daily activities of the partnership and, thus, the partnership agreement stipulates that 70% of...
-
X Ltd. is a GST registrant. At the end of last year, the class 10.1 UCC balance was $24,500. In the current year, X Ltd. disposed of the class 10.1 car for $28,000. The car had originally cost...
-
Jennifer Black and Pete White carry on a security service business through a partnership. Jennifer and Pete are both active in the business and share profits equally. In the current year they each...
-
COMMUNICATION CASE 2 The City of Larissa recently opened a solid waste landfill to serve the areas citizens and businesses. The citys accountant has gone to city officials for guidance as to whether...
-
53. A city starts a public library that has separate incorporation and gets some of its money from the state and some from private donations. Indicate whether each of the following independent state...
-
RESEARCH CASE 1 The City ofAbernethy has three large bridges built in the later part of the 1980s that were not capitalized at the time. The citys accountant is interested in receiving suggestions as...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App