Marigold Enterprises Ltd . , a private company following ASPE earned accounting income before taxes of $
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Marigold Enterprises Ltd a private company following ASPE earned accounting income before taxes of $ for the year ended December
During Marigold paid $ for meals and entertainment expenses.
In Marigolds tax accountant made a mistake when preparing the companys income tax return. In Marigold paid $ in penalties related to this error. These penalties were not deductible for tax purposes.
Marigold owned a warehouse building for which it had no current use, so the company chose to use the building as a rental property. At the beginning of Marigold rented the building to SPK Inc. for two years at $ per year. SPK paid the entire two years rent in advance.
Marigold used the straightline depreciation method for accounting purposes and recorded depreciation expense of $ For tax purposes, Marigold claimed the maximum capital cost allowance of $
Marigold began to sell its products with a twoyear warranty against manufacturing defects in to match a warranty introduced by its main competitor. In Marigold accrued $ of warranty expenses: actual expenditures for were $ with the remaining $ anticipated in
In Marigold was subject to a income tax rate. During the year, the federal government announced that tax rates would be decreased to for all future years beginning January Calculate taxable income and the amount of current income tax expense for
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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