Investment%20Tax%20Credit%20Problem0

Investment%20Tax%20Credit%20Problem0 - There is no taxable...

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Investment Tax Credit Problem A company has the following expenditures during 2010: $126,000 for qualifying property in Prince Edward Island $1,300,000 in qualifying SRED current expenditures and $2,500,000 in qualifying SRED capital expenditures. The company is a CCPC with Taxable income for the prior year of $185,000 and Taxable Capital Employed in Canada for the prior year of $6.5 million.
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Unformatted text preview: There is no taxable income in the current year, and taxes payable are currently $nil. Determine: The amount of Investment Tax Credits for 2010. The amount of refundable ITC’s for 2010. What is the appropriate treatment of the non-refundable portion? How will these tax credits affect income in 2011?...
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  • Fall '10
  • Ann
  • Taxation in the United States, investment tax credits, Taxable Capital Employed, SRED current expenditures, SRED capital expenditures

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