Tax Software Assignment Problem $-$ Chapter $14$

Tax Software AP $14-1$

RadionFaux Industries Ltd$.($RIL$)$ is a Canadian controlled private corporation $($CCPC$)$ situated at $123$

ABC Street in Ottawa, Ontario, K$4$E $1$A$1.$ Its Ontario corporation tax account number is $1234567.$ Its phone

number is $(613)111-1111.$ It was incorporated on February $24,1991,$ in Ontario.

$($The government$$s Crown copyright does not permit us to use fabricated business numbers in software

problems. To reduce the number of ProFile error messages because of this, enter NR $($for not registered$)$

in the Business Number field on the$$Info$$ form.$)$

The company has $1,000$ shares of common stock issued and outstanding, all of which are owned by the

only company shareholder Ms$.$ Margaret Ottawa $($SIN $527-000-301).$

Ms$.$ Ottawa, the president and director of the company, is the person who should be contacted with

respect to matters concerning the company$$s books and records. She is the authorized person as well as

the signing officer.

RIL is a retailer of pet supplies. All of its sales occur within Canada. It has net assets of $$235,000$ on

December $31,2022.$ This includes a few investments that Ms$.$ Ottawa inherited from her father two years

earlier.

RIL owns all of the $500$ common shares of OttawaFaux Inc., which owns most of the investments Ms$.$

Ottawa inherited from her father. The common shares have a book value of $$1,200,000.$ OttawaFaux

Inc. has the same location and phone number as RIL OttawaFaux Inc. also has a calendar based

taxation year $($January $1$ to December $31).$ Enter NR $($for not registered$)$ in the appropriate Business

Number field for OttawaFaux Inc.

OttawaFaux Inc. is also involved in earning active business income through the breeding and sale of

championship dogs. It has total assets of $$2,000,000$ and total revenues for $2022$ of $$200,000.$ Its

taxable capital employed in Canada was $$350,000$ as at December $31,2021,$ and $$365,000$ as at dec $312022$