Question
Garred operates a proprietorship that generated $150,000 in income under GAAP. Included in this amount are: $9,000 of amortization expense; $5,000 for bad debt expense;
Garred operates a proprietorship that generated $150,000 in income under GAAP.
Included in this amount are:
$9,000 of amortization expense;
$5,000 for bad debt expense;
$112,000 cost of goods sold; and
$10,000 meals and entertainment with clients.
Garred's maximum CCA has been calculated at $20,000 for the year.
How much is Garred's business income for tax purposes?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
