Hi, I need to use tax software to solve the question. I'm using "Profile Tax software".

But I have a no idea how to fill in the numbers inside of the software.

So, I wonder if you guys can help me solve this questions.

It would be really appreciate how the numbers are chosen or calculate from the contents.

Here is the question.

RIL is a retailer :pet supplies within Canada. It has net assets of $235,000 on Dec31, 2017 includes a few investments that Ms. Ottawa inherited from her father 2yrs earlier.

RIL owns all of the 500 C/S of OttawaFaux Inc., which holds most of the investments Ms. Ottawa inherited from her father. The C/S have a book value of $1,200,000. OttawaFaux Inc. is also involved in earning active business income through the breeding and sale of championship dogs. It has total assets of $2,000,000 and total revenues for 2017 of $200,000. Its Taxable Capital Employed In Canada as at December 31, 2016 was $350,000. As at December 31, 2016, the following information applied to RIL:

Taxable Capital Employed In Canada $328,000

RDTOH 5,200

Dividends Declared And Paid During 2016 Nil

GRIP Balance 11,750

Capital Dividend Account Balance 6,000

For the taxation year end. Dec 31, 2017, RIL's I/S, before any deduction for income taxes, was as follows:

Sales Revenues $580,000 ,Interest On Long-Term Debt 27,500,

Interest Received On Foreign Bank Account (Note 1) 18,000,

Eligible Dividends On Royal Bank Shares 17,500 ,

Non-Eligible Dividends From OttawaFaux Inc. (Note 2) 42,000 , Gain On Sale Of Shares (Note 3) 27,000, Total Revenues $712,000 ,Cost Of Goods Sold $208,000, Amortization Expense 122,000, Other Operating Expenses 147,000, Total Expenses (Excluding Taxes) $477,000, Net Income (Before Taxes) $235,000

Note1) This interest is net of $2,000 in taxes withheld in Ireland.

Note2) As a result of paying this $42,000 in dividends to RIL, OttawaFaux Inc. received a dividend refund of $14,000.

Note3) On Mar 23, 2017, RIL sold 2,700 shares of Canadian Imperial Bank of Commerce. The common shares had cost $118,800 on June 6, 2014 and were sold for net proceeds of $145,800.

Other Information: 1. Expenses include a deduction for charitable donations to the Ottawa Civic Hospital in the amount of $5,000.

2. RIL's Expenses include penalties of $3,500 resulting from a judgment in the Tax Court Of Canada.

3. RIL reimbursed Ms. Ottawa $34,000 for business meals and entertainment for clients and suppliers during the year.

4. During the year, RIL incurred $20,000 in landscaping costs. For accounting purposes these are being treated as a capital asset, to be amortized using the straight-line method over 10 years. The related amortization is included in the Amortization Expense shown on the Income Statement.

5. The opening UCC balances were $246,000 for Class 1, $135,000 for Class 8 and $90,000 for Class 10. The only fixed asset disposition during the year was the sale of a delivery truck. The truck had cost $35,000 and was sold for its net book value of $12,000. The only fixed asset acquisition was $52,000 in office furniture.

6. During 2017, RIL paid taxable dividends of $92,000. Of these dividends, $25,000 was designated as eligible. On September 1, 2017, RIL also elects to pay the maximum capital dividend allowable.

7. RIL allocates $60,000 of the annual business limit to OttawaFaux Inc. This is $5,000 more than OttawaFaux Inc. can utilize in 2017, but RIL cannot use the excess.

8. RIL paid quarterly income tax instalments of $8,000 each on the 15th of March, June, September and December during 2017.

9. RIL has a website describing the products it carries, but no income is generated from the website.

Required: Prepare the federal corporate tax return for RIL for the 2017 taxation year using the ProFile T2 corporate software program. On the ProFile schedule titled "Info", the Filing question "Complete return from GIFI?" is answered Yes by default, click No. Ignore the GIFI requirements except as follows:

On GIFI Schedule 125:

Input the total revenues less the Gain On Sale Of Shares ($685,000) on the line "Total Sales Of Goods And Services" (Code 8000).

Choose "Realized gains / losses on sale of investments" (Code 8211) from the drop down menu under Code 8089 and input the Gain On Sale Of Shares.

Choose "Purchases / cost of materials" (Code 8320) from the drop down menu under Cost of Sales and input the Cost of Goods Sold.

Choose "Amortization of tangible assets" (Code 8670) from the drop down menu under Operating Expenses and input the amortization expense.

Choose "Other expenses" (Code 9270) from the drop down menu under Operating Expenses and Other Operating Expenses.

On GIFI Schedule 100:

Input the Net Income figure as "Cash and deposits" (Code 1000) in order to make the total assets equal to the total liabilities and equity.

Although this will not properly complete the GIFI statements, it will eliminate the warning messages that would otherwise be generated when the Net Income figure and Amortization Expense are input on Schedule 1. These GIFI entries will have no effect on the calculations in the tax return.

In addition, to prevent audit warnings, S141, "Notes Checklist", has to be completed. Assume there are no notes to the financial statements and answer "No" to any other relevant questions.