3232ex8-1 - 90,000 Lease 20,000 CCA 15,000 Taxable Income...

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Cost of merchandise sold 500,000 Employee salaries and benefits 250,000 Other supplies and expenses 90,000 Leased space 20,000 Inventory checking and packaging eq. 100,000 Gross income 1,250,000 CCA 30% Fed. Tax 29% Prov. Tax 16% Prov. Small Bus. Tax 5% Canadian controlled and private mail-order computer supplier and peripherals
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Gross Revenue 1,250,000 Expenses COM 500,000 Emp. Sal 250,000 Op Exp
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Unformatted text preview: 90,000 Lease 20,000 CCA 15,000 Taxable Income 375,000 Taxes 22.60% 84,750 Net Income 290,250 Notes: 1. CCA = 100,000*0.50*0.30 2. Fed taxes 300,000*0.12 + 75,000*0.29= $57750 3. Prov taxes 300,000*0.05+75000*0.16= $27000 4. Total tax = 57750+27000= $84750 Effective tax rate = 84750/375,000 *100 = 22.6% 5. Marginal tax rate = 29+16 = 45%...
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This note was uploaded on 11/19/2010 for the course ME 3232 taught by Professor Lyon during the Fall '10 term at University of New Brunswick.

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3232ex8-1 - 90,000 Lease 20,000 CCA 15,000 Taxable Income...

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