50.1K

Verified Solution

Link Copied!

ABC Engineering is a CCPC providing professional engineering services in British Columbia. Information related to 2019 is as follows: Professional fees earned Interest on balances in chequing account Dividends received from public co. Depreciation expense Travel expenses Interest paid on late tax payments Donations (qualify as charitable) Membership dues paid Golf club membership Professional engineering association Nanaimo Chamber of Commerce Wage expense $ 280,000 1,200 4,500 ( 7,000) ( 3,400) ( 250) ( 8,000) (18,000) 10,000 3.000 5,000 (99,000) Additional information: UCC of office equipment was $2,000 at the beginning of the year. These items were purchased in 2016; . During 2019, 2 filing cabinets were purchased from an arm's length furniture store for $700 each; the 2 old cabinets were traded in for $200 each. Each cabinet had an original cost of $400 and a NBV of $75. . The interest income was earned on cash held in the bank A $2,000 taxable dividend was paid in the year Required: Calculate the following amounts: a) Net Income for tax purposes, beginning with accounting net income b) Taxable income c) Part I Tax Payable for the year ended December 31, 2016 Include explanations for items where you needed to apply judgement (for example, if you made an assumption about the tax treatment of a particular item or items) ABC Engineering is a CCPC providing professional engineering services in British Columbia. Information related to 2019 is as follows: Professional fees earned Interest on balances in chequing account Dividends received from public co. Depreciation expense Travel expenses Interest paid on late tax payments Donations (qualify as charitable) Membership dues paid Golf club membership Professional engineering association Nanaimo Chamber of Commerce Wage expense $ 280,000 1,200 4,500 ( 7,000) ( 3,400) ( 250) ( 8,000) (18,000) 10,000 3.000 5,000 (99,000) Additional information: UCC of office equipment was $2,000 at the beginning of the year. These items were purchased in 2016; . During 2019, 2 filing cabinets were purchased from an arm's length furniture store for $700 each; the 2 old cabinets were traded in for $200 each. Each cabinet had an original cost of $400 and a NBV of $75. . The interest income was earned on cash held in the bank A $2,000 taxable dividend was paid in the year Required: Calculate the following amounts: a) Net Income for tax purposes, beginning with accounting net income b) Taxable income c) Part I Tax Payable for the year ended December 31, 2016 Include explanations for items where you needed to apply judgement (for example, if you made an assumption about the tax treatment of a particular item or items)

Answer & Explanation Solved by verified expert

See Answer