Please apply Canadian tax rules

Guide-Assignment Problems 351 of all elections/options is utilized so that only enough income is generated to the jarit or all of the losses which would otherwise expire on the acquisition of control. would et most or all of the losses otherwise at ndro Madness Inc, a Canadian publie corporation, has prepared the accounting 1185), 6 ITA 9-30, 1101-113, 11104 1) srqment for the year ended April 30, 2018: VIDBO MADNESS INC INCOME STATEMENT FOR THE YEAR ENDED APRIL 30, 2018 Sales Cost of sales. Administrative expenses $995,000 $523,000 185,000 (708,000) $287,000 55,000 $342,000 (102,000) $240,000 Operating income Other income and expenses Provision for income taxes . . Net income Other Information (1) Included in the calculation of "Administrative expenses" . 435 (a) Interest on late income tax payments (b) Amortization (maximum capital cost allowance of $149,500) .....104,900 (c) Club dues for the local Country Club (d) Federal political contributionS (e) Donations to registered charities (D Property tax with respect to vacant land not being used 2,500 22,500 3,000 in the course of the business (g) Life insurance 1,950 4,800 5,500 e company is the beneficiary; not required for financing) (2) Included in the calculation of "Other income and expenses" (a) Landscaping of ground around new premise (b) Fees paid with respect to the investigation of a suitable site for the company's manufacturing plant (c) Dividends received from taxable Canadian corporation () Gain from the sale of another piece ofland, tused in the business, sold for $200,000 in March (purchased for $73,800) (e) Loss on sale of iruvest 136,200 . 10,000 73,800 ments held as capital property purchased for $85,000 and sold for $75,000 (3) Loss carryforwards from 2017 are (a) Non-capital losses 50,000 (b) Net capital losses (realized in 2012) g the accounting net income to income for tax for your inclusions or le reconciling You have been asked to prepathe appropriate statutory reference and taxable income. Indicate 111,875 Guide-Assignment Problems 351 of all elections/options is utilized so that only enough income is generated to the jarit or all of the losses which would otherwise expire on the acquisition of control. would et most or all of the losses otherwise at ndro Madness Inc, a Canadian publie corporation, has prepared the accounting 1185), 6 ITA 9-30, 1101-113, 11104 1) srqment for the year ended April 30, 2018: VIDBO MADNESS INC INCOME STATEMENT FOR THE YEAR ENDED APRIL 30, 2018 Sales Cost of sales. Administrative expenses $995,000 $523,000 185,000 (708,000) $287,000 55,000 $342,000 (102,000) $240,000 Operating income Other income and expenses Provision for income taxes . . Net income Other Information (1) Included in the calculation of "Administrative expenses" . 435 (a) Interest on late income tax payments (b) Amortization (maximum capital cost allowance of $149,500) .....104,900 (c) Club dues for the local Country Club (d) Federal political contributionS (e) Donations to registered charities (D Property tax with respect to vacant land not being used 2,500 22,500 3,000 in the course of the business (g) Life insurance 1,950 4,800 5,500 e company is the beneficiary; not required for financing) (2) Included in the calculation of "Other income and expenses" (a) Landscaping of ground around new premise (b) Fees paid with respect to the investigation of a suitable site for the company's manufacturing plant (c) Dividends received from taxable Canadian corporation () Gain from the sale of another piece ofland, tused in the business, sold for $200,000 in March (purchased for $73,800) (e) Loss on sale of iruvest 136,200 . 10,000 73,800 ments held as capital property purchased for $85,000 and sold for $75,000 (3) Loss carryforwards from 2017 are (a) Non-capital losses 50,000 (b) Net capital losses (realized in 2012) g the accounting net income to income for tax for your inclusions or le reconciling You have been asked to prepathe appropriate statutory reference and taxable income. Indicate 111,875