What is the corporations net income for tax purposes


Problem: Your corporate client presents you with the following accounting information for the fiscal year just ended: Net active business income 1,210,000 Net investment income 93,500 Net income (for financial statement purposes) 1,303,500 Items included in net active business income above: Sales - Manitoba (MB) 2,112,000 Sales - Nova Scotia (NS) 3,245,000 Sales - other provinces 0 Salaries and wages - MB 355,300 Salaries and wages - NS 277,200 Salaries and wages - other provinces 0 Depreciation expense 198,000 Gain on sale of Class 8 asset 70,400 Eligible dividends received 31,900 Provision for income taxes 220,000 Charitable donations 160,600 Additional information: The corporation is a non-CCPC. The corporation has permanent establishments in Manitoba and Nova Scotia. The balance in Class 8 at the end of the year, after the sale of one of the Class 8 assets, is 375,000. The CCA deduction for the year is 215,000. The corporation did not pay any dividends during the year. What is the corporation's net income for tax purposes for the year?

 

Request for Solution File

Ask an Expert for Answer!!
Taxation: What is the corporations net income for tax purposes
Reference No:- TGS03417710

Expected delivery within 24 Hours