ABC Inc. has just completed its 2021 taxation year ending December 31, 2021. Using ASPE, the accountant has determined that the Company has experienced a business loss of $120,000 before income taxes. The accountant provides the following information that was used in the determination of the net accounting loss:

Instructions:

For each "question", provide the effect on the reconciliation of Net Loss for Accounting Purposes to minimum Net Business Income/Loss for Tax Purposes.

QUESTION 5

The company spent $7,300 on advertising on a US TV station. The ad was meant to attract American customers to use ABC's online offerings.

1 points

QUESTION 6

The Company expensed $124,000 in Depreciation and Amortization during the year.

1 points

QUESTION 7

The Company's expenses include costs of new landscaping at their administration building in the amount of $5,200 all of which was paid in the year. For accounting purposes this was treated as an asset and was amortized accordingly.

1 points

QUESTION 8

The Company was forced to pay damages in the amount of $14,700 for failure to perform a service contract. The amount was paid when the client threatened to bring action for breach of contract. The $14,700 was expensed in the current year.

1 points

QUESTION 9

As the Company changed property and casualty insurers during the year, all of its assets had to be appraised. The cost of this appraisal was $1,130, with the entire amount being expensed in the year.

1 points

QUESTION 10

The Company's expenses include donations to registered charities of $4,400.