Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you solve this Canadian Corporate Taxation! UPI Industries Ltd, a Canadian corporation with a head office in Novo Scotia, has recently been designated a
Can you solve this Canadian Corporate Taxation!
UPI Industries Ltd, a Canadian corporation with a head office in Novo Scotia, has recently been designated a public corporation. Its shores are traded on the TSX Venture Exchange. Over the past year, the company has pursued an aggressive expansion policy. Sales personnel based at head office have travelled to North Dakoto and Minnesoto and have achieved moderate success in developing new customers in the United States. In addition, the company has opened a branch location in Alberto by establishing an office and manufacturing plant staffed by new Alberto personnel. The Alberta manufocturing plant is the company's first venture into manufacturing Selected financial information for the company's current fiscal period is presented in the following chart. 1. 2. At the end of the previous year, the company had net capital losses of $108,900 and non-capital losses of $145,200 that were avallable for carry-forward. 3. The Alberto branch location includes a building and equipment. The company's accountant is in the process of determining the corporation's tox liability and indicates that the onnualized cost of manufacturing capital employed in the Alberta branch is $200,000 and that the corporation's total annualized cost of tangible property used amounts to $800,000. The occountant also indicates that the manufacturing labour in the Alberta branch amounts to $120,000. This amount has been calculated in accordance with the income tox rules for determining monufacturing labour. 4. The assumed provinciai corporate income tax rate is 16% in Nova Scotia and 12% in Alberto. Taxable Income Allocate Income between Head office and Branch Taxable Income for Head Office - Nova Scotia Taxable Income for Alberta Total Taxable Income Federal Taxes Federal Basic tax Abatement General tax reduction Net Federal Tax Provincial Taxes Head Office - Nova Scotla Branch - Alberta Total Federal and Provincial Taxes Required: 1. For the current year, determine UPI's (a) net income for tax purposes: (b) taxable income; and (c) federal and provincial tax liablities Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started