Required: A. Calculate the minimum Net Income For Tax Purposes for Kalex for 2020 with a...
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Required: A. Calculate the minimum Net Income For Tax Purposes for Kalex for 2020 with a reconciliation that begins with the net accounting income of $2,189,000. Make all necessary adjustments, including CCA for each class of property together with the UCC balance as of January 1, 2021. Show all supporting calculations. B. Calculate the minimum Taxable Income for Kalex for 2020. Indicate the amount and type of any carry overs that are available at the end of the year. C. Calculate the minimum federal Part I Tax Payable for Kalex for 2020. The province of Ontario is one of three provinces and territories in Canada (Saskatchewan and Yukon are the others) that provides a reduced tax rate for M&P activity. The determination of the M&P credits in those jurisdictions uses the federal calculations and as a result a separate calculation of the federal M&P deduction is required. D. Assume (1) that the foreign tax credit for foreign business income is equal to the foreign taxes withheld of $77,900 and (2) that the Additional Refundable Tax (ART) is equal to 10-2/3 percent of Aggregate Investment Income of $16,500. Required: A. Calculate the minimum Net Income For Tax Purposes for Kalex for 2020 with a reconciliation that begins with the net accounting income of $2,189,000. Make all necessary adjustments, including CCA for each class of property together with the UCC balance as of January 1, 2021. Show all supporting calculations. B. Calculate the minimum Taxable Income for Kalex for 2020. Indicate the amount and type of any carry overs that are available at the end of the year. C. Calculate the minimum federal Part I Tax Payable for Kalex for 2020. The province of Ontario is one of three provinces and territories in Canada (Saskatchewan and Yukon are the others) that provides a reduced tax rate for M&P activity. The determination of the M&P credits in those jurisdictions uses the federal calculations and as a result a separate calculation of the federal M&P deduction is required. D. Assume (1) that the foreign tax credit for foreign business income is equal to the foreign taxes withheld of $77,900 and (2) that the Additional Refundable Tax (ART) is equal to 10-2/3 percent of Aggregate Investment Income of $16,500.
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Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
Posted Date:
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