Exercise 1

Calculate minimum 2023 net income for tax purposes (NIFTP) for Lawn and Order based on the following information. Please round your final answer to the nearest dollar. Do not round intermediary answers. Do not use $ signs in your final answer.

• Accounting Net Income - $156,100
• Depreciation Expense - $52,500
• Advertising expenses paid to a foreign advertiser to target potential Canadian customers - $5,000
• Business meals and entertainment - $6,500
• Charitable donations - $1,000

Exercise 2

Calculate minimum 2023 net income for tax purposes (NIFTP) for Lawn and Order based on the following information. Please round your final answer to the nearest dollar. Do not round intermediary answers. Do not use $ signs in your final answer.

• Accounting Net Income - $156,100
• Loss from theft of soil - $10,000
• Legal fees for obtaining a loan - expensed through the income statement - $20,000
• Lawn and Order paid the owner's daughter to do the bookkeeping. $1,000 was paid to her. The going rate for an external consultant to do the bookkeeping was $5,000.
• Maximum CCA was determined to be $40,000.

Exercise 3

For the taxation year ending December 31, 2023, Wheely Fun had net income for tax purposes (NIFTP) of $500,000. This was made up of $200,000 of active business income, $200,000 of taxable capital gains, and $100,000 of dividends from Canadian public companies. During the year, the Company made donations to Canadian registered charities totalling $10,000. At the beginning of 2023, the Company has a net/allowable capital loss carry forward of $350,000. It intends to deduct loss carryforwards to the maximum extent possible. Determine theminimum taxable incomefor Wheely Fun for the year ended December 31, 2023. Round your final answer to the nearest $. Do not round intermediary answers.

Exercise 4 For the taxation year ending December 31, 2023, Wheely Fun is a CCPC that had net income for tax purposes (NIFTP) of $500,000. This was made up of $200,000 of active business income, $200,000 of taxable capital gains, and $100,000 of dividends from Canadian public companies. During the year, the Company made donations to Canadian registered charities totalling $10,000. At the beginning of 2023, the Company has a net/allowable capital loss carry forward of $350,000. It intends to deduct loss carryforwards to the maximum extent possible. Assume taxable income is $190,000. It intends to deduct loss carryforwards to the maximum extent possible. The Company is part of an associated group that allocates of the business limit to it. Determine thePart I federal tax payablefor Wheely Fun for the year ended December 31, 2023. Round your final answer to the nearest $. Do not round intermediary answers.

Exercise 5 For the year ending December 31, 2023, Lin-Manuel's Verandas Inc., a Canadian public company, has Taxable Income of $592,000. Calculate Lin-Manuel's Verandas Inc.'s federal Tax Payable for the year ending December 31, 2023. Round your final answer to the nearest $. Do not round intermediary answers.

Exercise 6

Get a Grip is a CCPC with a December 31 year-end. The Company has GRIP of $46,600 atthe end of 2021. In 2021, the company received eligible dividends of $46,600 anddesignated $25,000 of its dividends paid as eligible.

In 2022, the Company had taxable income of $225,000. This amount includes $55,000 ofaggregate investment income, $50,000 of eligible dividends, and $120,000 of activebusiness income.

In determining its 2022 income tax payable, the company has a small business deductionof $22,800 (19% x $120,000). In 2022, the Company pays taxable dividends of $40,000and $23,000 of this is eligible.

Calculate the company's GRIP at the end of 2022. Roundyour final answer to the nearest $. Do not round intermediary answers.

Exercise 7

I Ship Thee is a boat building company and a CCPC with a December 31 year-end. On December 31, 2022, the company had an ERDTOH balance of $125,000 and a NERDTOH balance of $150,000. The GRIP balance is $300,000.

In 2023, the company paid eligible dividends of $300,000 and $200,000 of non-eligible dividends. What is the dividend refund that the company would be entitled to on paying out the eligible dividends and non-eligible dividends it intends to? Round your final answer to the nearest $. Do not round intermediary answers.