The condensed before tax Income Statement for Swindex Incorporated for the year ending December 31, 2014,...

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The condensed before tax Income Statement for Swindex Incorporated for the year ending December 31, 2014, prepared from information included in its financial statements, is as follows: Sales Cost Of Sales Gross Margin Other Expenses (Not Including Taxes) Operating Income Before Taxes Other Income And Losses Income Before Taxes Bond discount amortization Interest on deficient corporate tax instalments Reserve for inventory declines Interest paid on bonds issued $3,000,000 (1,570,000) $1,430,000 Other Information: 1. During the year, the Company spent $5,200 for landscaping its head office grounds. For accounting purposes this was treated as a capital expenditure, but was not amortized during the current year. 2. The Other Expenses (Not Including Taxes) account included the following amounts: $500 1,700 96,300 22,000 (755,000) $ 675,000 275,000 $ 950,000 Amortization expense Cost of advertising in magazine distributed only in Jamaica Charitable donations Damages paid for breach of contract Loss from theft Cost of appraisal of property to be sold 36,500 18,000 19,100 3,200 15,000 Cost of sponsoring local hockey teams Cost of advertising circulars (One-half have been distributed) 3. The Other Income And Losses account contains the following items: $18,000 2,800 3,800 4. Maximum CCA has been calculated to be $57,500 for the year ending December 31, 2014. The policy of the Company is to deduct maximum CCA in each taxation year. Required: Using the preceding information, calculate Swindex Incorporated's Net Income For Tax Purposes for the year ending December 21 2014 The condensed before tax Income Statement for Swindex Incorporated for the year ending December 31, 2014, prepared from information included in its financial statements, is as follows: Sales Cost Of Sales Gross Margin Other Expenses (Not Including Taxes) Operating Income Before Taxes Other Income And Losses Income Before Taxes Bond discount amortization Interest on deficient corporate tax instalments Reserve for inventory declines Interest paid on bonds issued $3,000,000 (1,570,000) $1,430,000 Other Information: 1. During the year, the Company spent $5,200 for landscaping its head office grounds. For accounting purposes this was treated as a capital expenditure, but was not amortized during the current year. 2. The Other Expenses (Not Including Taxes) account included the following amounts: $500 1,700 96,300 22,000 (755,000) $ 675,000 275,000 $ 950,000 Amortization expense Cost of advertising in magazine distributed only in Jamaica Charitable donations Damages paid for breach of contract Loss from theft Cost of appraisal of property to be sold 36,500 18,000 19,100 3,200 15,000 Cost of sponsoring local hockey teams Cost of advertising circulars (One-half have been distributed) 3. The Other Income And Losses account contains the following items: $18,000 2,800 3,800 4. Maximum CCA has been calculated to be $57,500 for the year ending December 31, 2014. The policy of the Company is to deduct maximum CCA in each taxation year. Required: Using the preceding information, calculate Swindex Incorporated's Net Income For Tax Purposes for the year ending December 21 2014

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To calculate Swindex Incorporateds Net Income for tax purposes we need to make adjustments to the in... View the full answer