CHAPTER TAX The depreciation expense and the book values for capital assets have been
correctly recorded in the financial statements:
DEPRECIATION EXPENSE CANNOT BE DEDUCTED AS AN EXPENSE ON THE TAX RETURN BUT
CCA CAN BE DEDUCTED ON THE TAX RETURN AS DONE IN CHAPTER CCA IS GIVEN IN
POINT
CHAPTER TAX
CHAPTER TAX In calculating income tax expense, the tax rate was multiplied by
the income before tax amount on the preliminary income statement.
Additional information to compute the income tax expense amount:
i The company paid a hefty fine for $ in which is not deductible for tax
purposes.
ii The company paid $ in for Casey Castle's membership at a private golf club.
This amount is not deductible for tax purposes
iii. Capital Cost Allowance CCA for is $
You remind yourself that there are other items mentioned previously that will affect the
computation of the income tax expense.
