Assignment_5 - ENGR 301/H Assignment 5 Assignments must be...

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ENGR 301/H - Assignment 5 Assignments must be submitted using the course website: Submission deadline: 1 pm, Friday November 13, 2009 Assignments must be done individually Provide your calculations Problem 1 (25 marks) Jane Shay lives in Quebec and operates a management consulting business. The business has been successful and now produces a taxable income of $65,000 a year after all “ordinary and necessary” expenses and depreciation have been deducted. At present the business is operated as a proprietorship; that is Jane pays federal income tax on the entire $65,000. For tax purposes, it is as if she had a job that paid her a salary of $65,000 a year. As an alternative, Jane is considering incorporating the business. If she does, she will pay herself $22,000 a year from the corporation. The corporation will then pay taxes on the remaining $43,000 and retain the balance of the money as a corporate asset. Thus Jane’s two alternatives are to operate the business as a proprietorship or as a corporation. Jane is
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Assignment_5 - ENGR 301/H Assignment 5 Assignments must be...

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