January 1, 2021. The automobile is not a zero-emission vehicle. During 2021, it is driven a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
January 1, 2021. The automobile is not a zero-emission vehicle. During 2021, it is driven a total of 23,000 kilometres, of which 21,000 kilometres relate to business use and only 2,000 kilo- metres for personal use. Operating costs for the year totalled $4,140. Other 2021 costs of carrying on the business, determined on an accrual basis, are as follows: Building operating costs Payments to assistants Miscellaneous office costs Meals with clients $18,600 31,200 9,400 10,500 Revenues for the year ending December 31, 2021, were $224,000. Required: Calculate the minimum business income Cody would include in his 2021 personal income tax return. In preparing your solution, ignore GST/HST & PST considerations. Income with CCA) AP 6-6 (Proprietorship-Business Cody Jewel is an accountant who has not incorporated his professional practice. The practice has a December 31 year end. Cody carries on the business of a professional practice in a building that he owns. He pur- chased the building in 2018 for $550,000, with the estimated value of the land at that time being $125,000 and the remaining $425,000 attributable to the building. Cody's practice occupies 100% of the building and, because it was a new building when he acquired it, he has elected to place it in a separate class 1. On January 1, 2021, the building has a UCC of $380,000. Because he is attracting an increasingly wealthy clientele, Cody has decided to upgrade his office. During February 2021, he replaces all of his old furniture and fixtures. The old furniture and fixtures had a capital cost of $65,000 and an opening UCC of $41,000. It is all sold for $22,000. The new furniture and fixtures have a capital cost of $136,000. Other property acquisitions during 2021 are as follows: New computer Applications software Client list from retiring accountant $1,800 2,700 32,000 Because he has started to provide in-home services for many of his clients, he has an auto- mobile that is used largely for this purpose. Cody purchased the automobile for $56,000 on January 1, 2021. The automobile is not a zero-emission vehicle. During 2021, it is driven a total of 23,000 kilometres, of which 21,000 kilometres relate to business use and only 2,000 kilo- metres for personal use. Operating costs for the year totalled $4,140. Other 2021 costs of carrying on the business, determined on an accrual basis, are as follows: Building operating costs Payments to assistants Miscellaneous office costs Meals with clients $18,600 31,200 9,400 10,500 Revenues for the year ending December 31, 2021, were $224,000. Required: Calculate the minimum business income Cody would include in his 2021 personal income tax return. In preparing your solution, ignore GST/HST & PST considerations. Income with CCA) AP 6-6 (Proprietorship-Business Cody Jewel is an accountant who has not incorporated his professional practice. The practice has a December 31 year end. Cody carries on the business of a professional practice in a building that he owns. He pur- chased the building in 2018 for $550,000, with the estimated value of the land at that time being $125,000 and the remaining $425,000 attributable to the building. Cody's practice occupies 100% of the building and, because it was a new building when he acquired it, he has elected to place it in a separate class 1. On January 1, 2021, the building has a UCC of $380,000. Because he is attracting an increasingly wealthy clientele, Cody has decided to upgrade his office. During February 2021, he replaces all of his old furniture and fixtures. The old furniture and fixtures had a capital cost of $65,000 and an opening UCC of $41,000. It is all sold for $22,000. The new furniture and fixtures have a capital cost of $136,000. Other property acquisitions during 2021 are as follows: New computer Applications software Client list from retiring accountant $1,800 2,700 32,000 Because he has started to provide in-home services for many of his clients, he has an auto- mobile that is used largely for this purpose. Cody purchased the automobile for $56,000 on
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these law questions
-
Discuss why the demand for the social determinants of health and medical care is considered to be a derived demand in a health production function.
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
In the figure below, a square of edge lengths is formed by four spheres of masses, m, M, m3, and m4. What is the x component and the y component of the net gravitational force from them on a central...
-
For large U.S. companies, what percentage of their total income comes from foreign sales? A random sample of technology companies (IBM, Hewlett-Packard, Intel, and others) gave the following...
-
Basic Summary Statistics Problem: Percent of State Expenditures for Roads and Bridges that comes from user fees. An article noted that owners of EV vehicles do not pay gas taxes that are often...
-
For starting a centrifugal pump, its delivery valve should be (a) open (b) close (c) partially open (d) any one of the above
-
You decided to run an experiment - improve current CTA on the in-app pricing page (1 experimental variation and one control group). Each month the pricing page is seen by 16,000 users. 800 of those...
-
Bonita, Inc. decided to implement the activity-based costing approach and was quite successful in its use. However, the controller is wondering if instead of only two activity cost pools, they should...
-
Find the risk-neutral probabilities and zero cost date 0 forward prices (for settlement at date 1) for the stock in exercise 7.2. As in that exercise, assume a risk-free rate of 15% per period. 7.2....
-
Determine control words when the ports of Intel 8255 are defined as follows: Port A as an input port. Mode of the Port A is Mode 0. Port B as an input port. Mode of the Port B is Mode 0. Port C upper...
-
Your classmates could end up being important business contacts as you all progress through your careers. Of course, this also means you might be asked for favors that youre not comfortable giving,...
-
What role do demographics and psychographics play in audience analysis during the planning of a persuasive message?
-
Every six months, your organization reviews the procedures it follows as part of a more general review of performance. The slight improvement in sales shown by the review is 3 percent behind target...
-
Your company has been operating for five years and is involved in the design and creation of landscape garden areas for corporate clients. When the business started, you relied on a number of...
-
You work for a business that operates 58 snack food stalls located at railway stations, bus terminals, and other transport hubs. The business has been growing over the past three years but lacks...
-
A written contract to sell fruit pellets contained the express stipulation, shipment to be made in good condition. In fact, some of the pellets were not in good condition when shipped. However, they...
-
$10,000 was borrowed at 3.5% on July 17. The borrower repaid $5000 on August 12, and $2000 on September 18. What final payment is required on November 12 to fully repay the loan?
-
How much of each of the following prizes or awards is taxable? a. Cheline received a $50,000 gift bag at the Oscars in 2012. b. Jon received a gold watch worth $350 for 25 years of service to his...
-
Kent Pham, CPA, is a 45-year-old single taxpayer living at 169 Trendie Street, La Jolla, CA 92037. His Social Security number is 865-68-9635. In 2012, Kent's W-2 as the controller of a local...
-
For each of the following cases, indicate the filing status for the taxpayer(s) for 2012 using the following legend: A - Single B - Married, filing a joint return C - Married, filing separate returns...
-
Kinney A.. had the following assets and liabilities on the dates indicated. Kinney began business on January 1, 2024, with an investment of 100,000. Instructions From an analysis of the change in...
-
Two items are omitted from each of the following summaries of statement of financial position and income statement data for two proprietorships for the year 2025, Greenes Goods and Solar Enterprises....
-
Listed below are some items found in the financial statements of Min-Seo Promotions. Indicate in which financial statement(s) the following items would appear. a. Service revenue. b. Equipment. c....
Study smarter with the SolutionInn App