Page $2$

Selected Balance Sheet information

Fixed Assets

Opening NBV

Closing NBV

Opening UCC

Closing UCC

CCA In the year

$1,200,000\mathrm{.}00$

$1,500,000\mathrm{.}00$

$450,000\mathrm{.}00$

$615,000\mathrm{.}00$

$200,000\mathrm{.}00$

Fixed Assets additions for accounting and tax in the year were $$365,000$ with no disposals

Right of Use Assets

Opening NBV

Closing NBV

$305,500\mathrm{.}00$

$250,000\mathrm{.}00$

Right of Use Liability

Opening NBV

Closing NBV

$275,000\mathrm{.}00$

$200,000\mathrm{.}00$

Lease Payments including interest component

$75,000\mathrm{.}00$

Other Information

$($a$)$ Bonuses are paid in March of the following year

$($b$)$ Assume company statutory tax rate is $25\%$ for $2023$

$($c$.)$ CRA audit adjustment was accepted by the company for the following items:

Rate in effect in this tax year was $26\%$

Meals and Entertainment

Golf Dues

Restructuring reserve

These adjustments resulted in an increase to taxable income

Required:

$(1)$ Calculate Taxable Income.

$(2)$ Calculate tax expense for the full year

$(3)$ Prepare an effective tax rate reconciliation