SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN: 9780357391266
Author: Nellen
Publisher: Cengage
Question
You are working with ABCD tax consultant group, new client; Leduc Corporation asks you to help them to identify there tax payables, and they provide you with the following information.
Leduc co. is a Canadian Controlled Private Corporation and the Taxable Capital Invested in Canada $5,000,000. Its business activity importing consumer goods from South Africa, and distribute to different retailers in Canada.
They provide you with there Income statement before taxes for the year ending Dec 31, 2023.
Leduc Corp.
Income Statement before Taxes
Year ending Dec 31, 2023
Net Sales
Cost of goods Sold
$7,864,238
$6,451,133
Gross Profit
$1,413,105
Selling and administration Expenses:
Selling expenses
Wages and Salaries
$382,000
$308,000
Rent and office expenses
$276,000
Amortization Expense
$50,000
Other Expenses
$169,660
Total Expenses Not including Income Taxes
$1,185,660
Other Income
Income before Taxes
$167,044
$394,490
Leduc corp. did not complete there Balance Sheet but they provide you with some accounts balances:
1. Equipment net of
, 2. Future income tax liability
,3. Investment in Devon Corp.
1. Retained Earning
$426,000 the original costs was
$153,000
$840,000 UCC
$250,003 all equipments in class 8 CCA rate.
20%
2% of the market value of Devon voting shares, (not connected))
285,000 this is equal to
2,000,000
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Transcribed Image Text:You are working with ABCD tax consultant group, new client; Leduc Corporation asks you to help them to identify there tax payables, and they provide you with the following information. Leduc co. is a Canadian Controlled Private Corporation and the Taxable Capital Invested in Canada $5,000,000. Its business activity importing consumer goods from South Africa, and distribute to different retailers in Canada. They provide you with there Income statement before taxes for the year ending Dec 31, 2023. Leduc Corp. Income Statement before Taxes Year ending Dec 31, 2023 Net Sales Cost of goods Sold $7,864,238 $6,451,133 Gross Profit $1,413,105 Selling and administration Expenses: Selling expenses Wages and Salaries $382,000 $308,000 Rent and office expenses $276,000 Amortization Expense $50,000 Other Expenses $169,660 Total Expenses Not including Income Taxes $1,185,660 Other Income Income before Taxes $167,044 $394,490 Leduc corp. did not complete there Balance Sheet but they provide you with some accounts balances: 1. Equipment net of , 2. Future income tax liability ,3. Investment in Devon Corp. 1. Retained Earning $426,000 the original costs was $153,000 $840,000 UCC $250,003 all equipments in class 8 CCA rate. 20% 2% of the market value of Devon voting shares, (not connected)) 285,000 this is equal to 2,000,000
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