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Ken Gray rums a small proprietorship (Ken's Fish) that specializes in fishing gear. He has provided you with the following information: $30,000 Bad debts expense
Ken Gray rums a small proprietorship (Ken's Fish) that specializes in fishing gear. He has provided you with the following information: $30,000 Bad debts expense on sales which are deemed umcollectible. Last year, the uncollectible sales were $15,000. During the year the company also wrote off$5,000 of accounts receivable because the customer went bankrupt. 1,000 Advertising in a local paper Advertising in a small American newspaper directed at the Canadians living in that city Meals and entertainment Property taxes on a vacant piece of land adjacent to the business that eams no income Golf course fees for Ken 2.000 10.000 2,500 1,500 10,000 Ken paid for landscaping during the year. This has been capitalized in the accounting records 12.341 Ken paid for a lease on his car. He used the car 67% for business purposes Required: Comment on the treatment of each of the above items for tax purposes. Show a necessary calculations and determine the amounts fany that may be claimed for tax purposes
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