CHAPTER $18$ TAX The depreciation expense and the book values for capital assets have been

correctly recorded in the financial statements:

DEPRECIATION EXPENSE CANNOT BE DEDUCTED AS AN EXPENSE ON THE TAX RETURN BUT

CCA CAN BE DEDUCTED ON THE TAX RETURN AS DONE IN CHAPTER $18.$ CCA IS GIVEN IN

POINT $8.$

CHAPTER $18$ TAX

CHAPTER $18$ TAX In calculating income tax expense, the $2023$ tax rate $(20\%)$ was multiplied by

the income before tax amount on the preliminary income statement.

Additional information to compute the income tax expense amount:

i$.$ The company paid a hefty fine for $$15,000$ in $2023$ which is not deductible for tax

purposes.

ii$.$ The company paid $$30,000$ in $2023$ for Casey Castle's membership at a private golf club.

This amount is not deductible for tax purposes

iii. Capital Cost Allowance $($CCA$)$ for $2023$ is $$325,000.$

You remind yourself that there are other items mentioned previously that will affect the

computation of the income tax expense.