Problem 9

elections/options is utilized so that only enough income is generated to s which would otherwise expire on the soquisition of control 351 athe mot or ail of the losse of Video M ne Ciiment for the year ended April 30, 2018 VIDEO MADNESS INC INCOME STATEMENT FOR THE YEAR ENDED APRIL. 30, 2018 Cost of sales Administrative expenses Operating income Other income and expenses $523,000 185,000 (708,000) $287,000 $342,000 (a) Interest on late income tax payments (b) Amortization (maximum capital cost allowance of $149,500) . (e) Club dues for the local Country Club (d) Federal political contributions... (e) Donations to registered charities () Property tax with respect to vacant land not being used $ 435 in the course of the business (8) Life insurance premium with respect to the president (the con 1,950 (2) Included in the calculation of Other income and expenses" (a) Landscaping (b) Fees paid with respect to the investigation of a suitable site for the of ground around new premise g plant (c) Dividends received from taxable Canadian corporation company's n (d) Gain from the sale of another piece of land, tused in the business, soild for $73,800) for $200,000 in March ( (e) Loss on sale of i held as capital property purchased for 10,000 and sold for $75,000 (3) Loss from 2017 are: (a) Non-capital losses (h) Net capital losses Crealized in 2012) reconeiling the accounting net income to income for tax inclusions or Have heen asked to prepare a schedule the a for your Prposes and taxa 111,875