Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exam Exercise Eleven - 6 (Geographical Allocation) Ramsden Inc., a Canadian public company, has Taxable Income for the taxation year ending December 31, 2009 in

image text in transcribed
image text in transcribed
Exam Exercise Eleven - 6 (Geographical Allocation) Ramsden Inc., a Canadian public company, has Taxable Income for the taxation year ending December 31, 2009 in the amount of $242,000. It has Canadian permanent establishments in Saskatchewan and Alberta. The Company's gross revenues for the 2009 taxation year are $3,013,000, with $1,520,000 of this accruing at the permanent establishment in Saskatchewan, and $912,000 accruing at the permanent establishment in Alberta. Wages and salaries total $192,000 for the year. Of this total, $63,000 is at the permanent establishment in Saskatchewan and $85,000 is at the permanent establishment in Alberta. Ramsden has sales to the U.S. through a U.S. permanent establishment. Calculate federal Tax Payable for the taxation year ending December 31, 2009. Ignore any foreign tax implications

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 Accounting Information for Decisions

Authors: John J. Wild

9th edition

1259917045, 978-1259917042

More Books

Students also viewed these Accounting questions

Question

How is vacation and sick time accrued?

Answered: 1 week ago

Question

Armed conflicts.

Answered: 1 week ago

Question

Pollution

Answered: 1 week ago