You have been asked to prepare a Schedule 1 reconciliation of accounting Net Income and...
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Accounting
You have been asked to prepare a Schedule 1 reconciliation of accounting Net Income and Net Income For Tax Purposes for the year ending December 3 Available information includes the following:
1. A capital asset was sold near the end of the year for $93,000. It had a cost of $89,300 and a net book value of $26,400. It was not the last asset in its CCA class and the UCC of this class was $263,000 before the disposition. There were no other additions or dispositions during the year.
2. During the year, the company has expensed estimated warranty costs of $22,000.
3. During the year, the Company acquired goodwill at a cost of $68,000. Since there was no impairment of the goodwill during the year, no write-down was required for accounting purposes.
4. Discount amortization on the companys bonds payable was $2,300 for the current year.
Required: Determine the addition and/or deduction that would be made in Schedule 1 for each of the preceding items.
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