Assignment#3.ods

# Monthly instalments of 7450012 6208 based on the

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- Monthly instalments of (\$74,500/12) = \$6,208 based on the first preceding year. - Two monthly instalments of (\$72,300/12) = \$6,025 based on the second preceding year following by a total of \$74,500. 3. In terms of minimizing instalment payments, both the second and third alternatives involve paying \$ While the problem does not ask you to take into consideration deferral, the third alternative would b The instalments are due on the last day of each month, beginning in January, 2010. Assignment Problem Thirteen - 7 Part A – Net And Taxable Income Accounting Net Income \$462,000.00 Additions: Amortization Expense \$546,000.00 Recapture CCA On Sale Of Depreciable Assets (\$390,000 - \$350,000) 40000 Taxable Capital Gain On Sale Of Depreciable Assets [(1/2)(\$450,000 - \$390,000)] 30000 Non-Deductible Meals And Entertainment [(50%)(\$50,000) 25000 Warranty Reserve 20000 Withholding On Foreign Income 3000 \$664,000.00 Deductions: CCA (Note One) -\$730,000.00 Accounting Gain On Depreciable Assets (\$450,000 - \$330,000) -120000 -850000 Net Income For Tax Purposes \$276,000.00 Dividends Received -11000 Non-Capital Loss Carry Forward Deducted -205000 Net Capital Loss Carry Forward Deducted -19000 Taxable Income \$41,000.00 Note 1 – The balance in Class 8 was nil subsequent to the sale of assets, no CCA would be included i Part B – Part IV Tax Payable The Part IV Tax Payable on the \$11,000 in portfolio received would be (\$11,000)(1/3) = \$3,667.

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Sheet1 Page 3 Part C – Part I Tax Payable (FTC = Amount Withheld) Base Amount Of Part I Tax (38%)(\$41,000) \$15,580.00 Federal Tax Abatement (10%)(\$41,000) -4100 Small Business Deduction ( Note Two) -5270 Additional Refundable Tax On Investment Income (Note Three) 667 Foreign Non-Business Tax Credit (Amount Withheld) -3000 Manufacturing And Processing Profits Deduction (Note Four) Nil General Rate Reduction (Note Five) Nil Part I Tax Payable \$3,887.00 Note 2 – The small deduction is 17 percent of the least three amounts: 1. Active Business Income \$190,000.00 2. Taxable Income \$41,000.00 Deduct: (10/3)(\$3,000) Foreign Non-Business Tax Credit -10000 \$31,000.00 3. Annual Business Limit \$500,000.00 The lowest out of the three will be the adjusted taxable income of \$31,000, which gives a small busine (17%)(\$31,000) = \$5,270 Note Three Interest on Long-Term Investments \$25,000.00 Taxable Capital Gains 30000 Foreign Non-Business Income 20000 Net Capital Loss Carry Forward Deducted -19000 Aggregate Investment Income \$56,000.00 ITA 123.3 refundable tax (ART) is 6-2/3 percent of the lesser of:
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• Winter '16
• Accounting, Taxation in the United States, small business deduction, non-business tax credit

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