Assignment Problem Six - 9 (Corporate Business Income With CCA) photographed by the paparazzi after a particularly enthusiastic night of partying. When Angela saw herself on the front page of every tabloid newspaper the next day, she knew that fame was not for her. Since Angela was a highly trained clothing designer and makeup artist, she felt she would be able to use those skills to start her own business and keep out of the limelight Angie's Amazing Getups Incorporated is a Canadian controlled private corporation with a and makeup used in movie and theatre productions with sales in Canada and the U.S. head office in London, Ontario. The company is a manufacturer of high end custom costumes The company started in business in 2016 when the sole shareholder, Angela Q. Snodgrass, was Angie's Amazing Getups incorporated Income Statement Year Ending December 31, 2015 Sales Cost Of Goods Sold Gross profit Expenses Member 2019, after discovering that the PM dig herAngela fured him and took over the eping posities her ing limited knowledge of account She has produced the following income Sent and miscellaneous financial information for the ended December 2015 med your help. General And Administrative Expenses (5852.000 Loss On Disposal Oi Limited Life Licence During your review of Angela's work and last year's tax return for the corporation, you have Assignment Peams 57.57.100 15,468.75 52.110,150 1.410.500 $699.651 17.000 Interest Income 110,532 Income Before Income Taxes 5793,183 (5182,000 35,000) 217.000 5576,183 550,000 3,500 Interest Operating Income Other Income: Income Taxes Current Future Net Income Statement the notes in the accounting recordsthe allowance For Doubtful Accounts was $25.000 December 31, 2019, and $20,000 at December 31, 2018. During 2019, the company had actual write-offs of $11.750. As a result, the accounting Bad Debt Expense was $16,750. This amount is included in General and Administrative Expenses on the Income A review of the listing of receivables (for tax purposes), indicates that the actual items that may be uncollectible total $15.000 at December 31, 2019. In 2018, the company deducted a reserve for bad debts of $13,000 for tax purposes. 2. General And Administrative Expenses include: Donations To Registered Charities $ 27,000 Accrued Bonuses - Accrued September 1, 2019, Paid June 15, 2020 78,000 Meals And Entertainment Costs: 51,000 Per Month For Premium Membership At Golf Club For Angie 12,000 $200 Per Month For Memberships At Golf Club For Salespeople 2,400 $32,000 For Meals While Entertaining Clients 32,000 $5,000 in Food Costs For Angie's Personal Chef For Her Meals At Home 5.000 $6,000 For Annual Summer BBQ For All Staff 100,000 Sponsorship or Various Theatre Productions That Use Angie's Costumes Advertising In A U.S. Theatre Magazine Directed At U.S. Clients New Software Purchased October 1, 2019 38,000 ($13,000 For Applications And $25,000 For Systems) 6,000 Accounting And Legal Fees For Amended Articles of Incorporation Costs To Attend Annual Convention of Costume Designers Held In Thailand 17,000 6,000 15,000 The undepreciated Class C10.1 For atentament Payment O Municipal Property Tax Cara Adastratives include both teployees for business travel the company po hemos each do .000 kilometerson employment related we per meter for the business use of the mobiles andre 300 meter None of the kilometer based on be included in the income of the employees CCA has always been taken on all assets hafanuary , 2019 were as follows 6. During 2019, a limited life licence to produce costumes based on a popular there are was sold for 563,000. The original cost of this licence was $95.000 and its net book at the time of sale was $80,000. The licence was the only asset in Class 14. fallows inote: some items are discussed in other sections of this problem). All amounts Purchases and sales of equipment and other capital assets made during 2019 were The company purchased land and constructed a new building on it during the year The building will be used 95% for manufacturing and processing. The cost of the land b. The company purchased a new set of furniture for the reception area for $1,200. CSome outdated desks used by the finance department with a cost of $5,000 were sold A company car for use by the president of the company was purchased for $90,000 for accounting purposes: the building cost $475,000 to for proceeds of $3,500. for $95,000. The old car was sold for $60,000. 5650,000 95.000 17.850 68,000 Nil 65,000 135,000 Class 14.1 Cu 53 d. Landscaping of the grounds around the new building cost $35,000. This amount was capitalized for accounting purposes. This car replaced the only other existing company car, which was purchased in 2017 Atence around the new building, high enough to prevent the paparazzi from taking pictures of Angela while she was at the office cost $52,000. 8. The company sold some shares that had been purchased several years ago. The capital gain on these shares was $152,708. Angela didn't know how to account for this, so she credited the entire amount to retained earnings. Required: Determine Angie's Amazing Getups incorporated's minimum Net Income For Tax Purposes for the year ending December 31, 2019. Ignore GST/HST/PST implications. What Information you want? Assignment Problem Six - 9 (Corporate Business Income With CCA) photographed by the paparazzi after a particularly enthusiastic night of partying. When Angela saw herself on the front page of every tabloid newspaper the next day, she knew that fame was not for her. Since Angela was a highly trained clothing designer and makeup artist, she felt she would be able to use those skills to start her own business and keep out of the limelight Angie's Amazing Getups Incorporated is a Canadian controlled private corporation with a and makeup used in movie and theatre productions with sales in Canada and the U.S. head office in London, Ontario. The company is a manufacturer of high end custom costumes The company started in business in 2016 when the sole shareholder, Angela Q. Snodgrass, was Angie's Amazing Getups incorporated Income Statement Year Ending December 31, 2015 Sales Cost Of Goods Sold Gross profit Expenses Member 2019, after discovering that the PM dig herAngela fured him and took over the eping posities her ing limited knowledge of account She has produced the following income Sent and miscellaneous financial information for the ended December 2015 med your help. General And Administrative Expenses (5852.000 Loss On Disposal Oi Limited Life Licence During your review of Angela's work and last year's tax return for the corporation, you have Assignment Peams 57.57.100 15,468.75 52.110,150 1.410.500 $699.651 17.000 Interest Income 110,532 Income Before Income Taxes 5793,183 (5182,000 35,000) 217.000 5576,183 550,000 3,500 Interest Operating Income Other Income: Income Taxes Current Future Net Income Statement the notes in the accounting recordsthe allowance For Doubtful Accounts was $25.000 December 31, 2019, and $20,000 at December 31, 2018. During 2019, the company had actual write-offs of $11.750. As a result, the accounting Bad Debt Expense was $16,750. This amount is included in General and Administrative Expenses on the Income A review of the listing of receivables (for tax purposes), indicates that the actual items that may be uncollectible total $15.000 at December 31, 2019. In 2018, the company deducted a reserve for bad debts of $13,000 for tax purposes. 2. General And Administrative Expenses include: Donations To Registered Charities $ 27,000 Accrued Bonuses - Accrued September 1, 2019, Paid June 15, 2020 78,000 Meals And Entertainment Costs: 51,000 Per Month For Premium Membership At Golf Club For Angie 12,000 $200 Per Month For Memberships At Golf Club For Salespeople 2,400 $32,000 For Meals While Entertaining Clients 32,000 $5,000 in Food Costs For Angie's Personal Chef For Her Meals At Home 5.000 $6,000 For Annual Summer BBQ For All Staff 100,000 Sponsorship or Various Theatre Productions That Use Angie's Costumes Advertising In A U.S. Theatre Magazine Directed At U.S. Clients New Software Purchased October 1, 2019 38,000 ($13,000 For Applications And $25,000 For Systems) 6,000 Accounting And Legal Fees For Amended Articles of Incorporation Costs To Attend Annual Convention of Costume Designers Held In Thailand 17,000 6,000 15,000 The undepreciated Class C10.1 For atentament Payment O Municipal Property Tax Cara Adastratives include both teployees for business travel the company po hemos each do .000 kilometerson employment related we per meter for the business use of the mobiles andre 300 meter None of the kilometer based on be included in the income of the employees CCA has always been taken on all assets hafanuary , 2019 were as follows 6. During 2019, a limited life licence to produce costumes based on a popular there are was sold for 563,000. The original cost of this licence was $95.000 and its net book at the time of sale was $80,000. The licence was the only asset in Class 14. fallows inote: some items are discussed in other sections of this problem). All amounts Purchases and sales of equipment and other capital assets made during 2019 were The company purchased land and constructed a new building on it during the year The building will be used 95% for manufacturing and processing. The cost of the land b. The company purchased a new set of furniture for the reception area for $1,200. CSome outdated desks used by the finance department with a cost of $5,000 were sold A company car for use by the president of the company was purchased for $90,000 for accounting purposes: the building cost $475,000 to for proceeds of $3,500. for $95,000. The old car was sold for $60,000. 5650,000 95.000 17.850 68,000 Nil 65,000 135,000 Class 14.1 Cu 53 d. Landscaping of the grounds around the new building cost $35,000. This amount was capitalized for accounting purposes. This car replaced the only other existing company car, which was purchased in 2017 Atence around the new building, high enough to prevent the paparazzi from taking pictures of Angela while she was at the office cost $52,000. 8. The company sold some shares that had been purchased several years ago. The capital gain on these shares was $152,708. Angela didn't know how to account for this, so she credited the entire amount to retained earnings. Required: Determine Angie's Amazing Getups incorporated's minimum Net Income For Tax Purposes for the year ending December 31, 2019. Ignore GST/HST/PST implications. What Information you want