IVULES . 1/2 Nita Company depreciates its assets straight - line over 5 years . Assume no residual / salvage value . The Capital Cost Allowance rate on the assets is 40 % ( subject to the year rule for the first year ) . Due to the untimely filing of the 2020 tax return , Nita Company paid a $ 1,000 penalty . This was deducted in the 2021 income statement for accounting purposes and is not tax deductible . Nita Company collected dividends of $ 500 and $ 1,200 in 2020 and 2022 , respectively , which are included as revenue in the respective income statements but are not taxable . During 2021 Nita Company started a warranty program . $ 5,000 and $ 7,000 were expensed in 2021 and 2022 , respectively . Actual expenditures under the warranty program were $ 3,000 and $ 8,000 for 2021 and 2022 , respectively . Nita is a public company and reports in compliance with IFRS .