Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ACC 642 CANTAX T2 PROBLEM NO.2 Due Date Per Professor CANTAX HurryUP Corp (insert your full name). is a manufacturer and distributor of computers. It

image text in transcribed
ACC 642 CANTAX T2 PROBLEM NO.2 Due Date Per Professor CANTAX HurryUP Corp (insert your full name). is a manufacturer and distributor of computers. It is a CCPC and for the year ended December 31, Current Year (2019), its financial statements showed net income of $405,000, after a tax provision of $115,000. HurryUP own 55% of Chip Inc., which makes computer parts. Included in the current year income are: Accounting Depreciation expense 50,000 Donations to registered charities 30,000 Accounting gain form sale of shares in a Canadian company. Bought in 1969 for $30,000 and sold in the 2019 for $90,000. The V-Day valuation was $55,000. 60,000 Loss on sale of an automobile. (4,000) (NBV-$12,000; Proceeds-$8,000) . Client Entertainment expenses 18,000 Interest on long-term deposits (This is Investment Income!) 22,000 Eligible Taxable dividends-from taxable Canadian corporations 35,000 . . Non-Eligible Taxable dividends from Chip Inc., 11,000 Other information: . UCC balances at Dec 31, last year Class 3 $150,000 45,000 10.1 (auto) 13,000 Chips Inc./ reported taxable income of $70,000, all of which is ABI, for the year ended December 31, 2019. HurryUP wants to ensure that Chips Inc., pays the least amount of tax possible Chips Inc., had Non-Eligible refundable dividend tax on hand of December 31, last year, of $50,000 and paid Non- Eligible $20,000 in cash dividend in 2019 . HurryUP has Non-Egligble RDTOH Balance of $25,000 and Zero Eligible RDTOH Balance at December 31, last year, and paid Non-Eligible $70,000 in cash dividend in 2019 REQUIRED: Prepare HurryUP's 2019 tax return, using CANTAX software. Schedules required: 1. Tax summary (this will be cover page) 2. T2.S1 - Reconciliation of taxable income 3. T2.S3 - Dividend received and taxable dividends paid 4. T2.S7, Page 5 - Calculation of ABI and investment income 5. T2.S8 - Capital cost allowance NOTE: Please add your name to the corporation name i.e.: HurryUP Corp., (Student Name)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statement Fraud Prevention And Detection

Authors: Zabihollah Rezaee, Richard Riley

2nd Edition

0470543205, 9780470543207

More Books

Students also viewed these Accounting questions

Question

What other publications/presentations does the person have?

Answered: 1 week ago

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago