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Lantz Ltd. reported earnings before income taxes of $640,000 in 20X5. The company had expensed $35,000 of golf club dues that were not tax deductible.
Lantz Ltd. reported earnings before income taxes of $640,000 in 20X5. The company had expensed $35,000 of golf club dues that were not tax deductible. There was tax-free dividend revenue of $15,000. Warranty expense was $50,000. Depreciation was $130,000, while CCA was $224,000. Warranty claims paid were $40,000. The tax rate for this year is 20%.
Required: Calculate taxable income and income tax payable.
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