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Novak Services Ltd . follows ASPE and had earned accounting income before taxes of $ 5 0 2 , 0 0 0 for the year
Novak Services Ltd follows ASPE and had earned accounting income before taxes of $ for the year ended December
During Novak paid $ for meals and entertainment expenses.
In Novak's tax accountant made a mistake when preparing the company's income tax return. In Novak paid $ in penalties related to this error. These penalties were not deductible for tax purposes.
Novak owned a warehouse building for which it had no current use, so the company chose to use the building as a rental property. At the beginning of Novak rented the building to Trung Inc. for two years at $ per year. Trung paid the entire two years' rent in advance.
Novak used the straightline depreciation method for accounting purposes and recorded depreciation expense of $ For tax purposes, Novak claimed the maximum capital cost allowance of $ This asset had been purchased at the beginning of the year for $
In Novak began selling its products with a twoyear warranty against manufacturing defects. In Novak accrued $ of warranty expenses: actual expenditures for were $ with the remaining $ anticipated in
In Novak was subject to a income tax rate. During the year, the federal government announced that tax rates would be decreased to for all future years beginning January
c
Calculate taxable income and the amount of current income taxes expense for
Taxable income
$
Income taxes payable
$
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