PLEASE SHOW THE CALCULATION
The following three independent cases involve the income tax consequences of incurring expenditures that are eligible for investment tax credits. Case A Case B Case Case A. Determine Lyndon's SRED expenditure limit for the 2021 taxation year. (Round your answer to the nearest dollar.) Lyndon's 2021 expenditure limit would be $ 2,883,750'. Case B. Determine the amount of any refund that GSE will be entitled to as a result of these investment tax credits and any available carry forwards. Include in your answer any other related income tax consequences. (Round your answers to the nearest dollar.) reduced in 2022 by $ 3,452. The $ 1,011,263 refundable tax credit on current The refund available to GSE would be $ 1,014,715. The amount that can be carried forward is $ 35,666'. The cost of the qualified property will be SRED expenditures will be income in 2022. added to Case C. Describe the 2020 and 2021 income tax consequences associated with the expenditures and claiming the related investment tax credits. (Round your answers to the nearest dollar.) With respect to the apprentice salaries, there will be a $ 17,450 credit against 2020 tax payable that will be added to income in 2021. With respect to the capital expenditures, there will be a 2021 credit against federal tax payable of $ 80,100 . The 2020 CCA amount will be $ 360,450". The UCC at December 31, 2021, would be $ 360,450, and the 2021 CCA will be $ 108,135. 1 - X 28, Self-Sti (similar - X lose Case a Case B that are eligit Since its incorporation, Lyndon Ltd. has been a CCPC. Lyndon's texable income was S755,500 for its taxation year ending December 31, 2020, and $811,600 for its taxation year ending December 31, 2021. Its Taxable Capital Employed in Canada was $11,550,000 for 2020 and S12.180,000 in 2021. Garrison Search Engine (GSE) has been a CCPC since its incorporation. GSE's taxable income in 2020 was $11.800 and $5,500 for 2021. The company has no Tax Payable for the taxation year ending December 31, 2021, or for any of the three preceding years. Its Taxable Capital Employed in Canada is $12.250,000 in 2020 and $14,650,000 In 2021, o the nearest Required: Determine Lyndon's SRED expenditure limit for the 2021 taxation year. nt tax credits found Print Done During 2021, the company incurred a number of expenditures that qualify for investment tax credits. $86,300 for qualified property in the Atlantic provinces $3,170,000 in current expenditures for SRED Required: Determine the amount of any refund that GSE will be entitled to as a result of these investment tax credits and any available carry forwards. Include in your answer any other related income tax consequences. 56. The cost bn curre - X Case C. Describe th Case C bderalt With respect to the payable of $ 80,100 Print Done In 2020, Birdie Inc. pays eligible salaries to 10 eligible apprentices. The total amount is $248,000, with five apprentices paid $14,900 each and five apprentices paid $34,700 each. In addition, on December 10, 2020, Birdie Inc. acquires $801,000 in Class 10 depreciable property on which a 10% investment tax credit is available. Assume that the investment tax credits available will be deducted against tax payable in the year they are earned. Required: Describe the 2020 and 2021 income tax consequences associated with the expenditures and claiming the related investment tax credits. Include in your solution the CCA for 2020 and 2021 for Case C. The following three independent cases involve the income tax consequences of incurring expenditures that are eligible for investment tax credits. Case A Case B Case Case A. Determine Lyndon's SRED expenditure limit for the 2021 taxation year. (Round your answer to the nearest dollar.) Lyndon's 2021 expenditure limit would be $ 2,883,750'. Case B. Determine the amount of any refund that GSE will be entitled to as a result of these investment tax credits and any available carry forwards. Include in your answer any other related income tax consequences. (Round your answers to the nearest dollar.) reduced in 2022 by $ 3,452. The $ 1,011,263 refundable tax credit on current The refund available to GSE would be $ 1,014,715. The amount that can be carried forward is $ 35,666'. The cost of the qualified property will be SRED expenditures will be income in 2022. added to Case C. Describe the 2020 and 2021 income tax consequences associated with the expenditures and claiming the related investment tax credits. (Round your answers to the nearest dollar.) With respect to the apprentice salaries, there will be a $ 17,450 credit against 2020 tax payable that will be added to income in 2021. With respect to the capital expenditures, there will be a 2021 credit against federal tax payable of $ 80,100 . The 2020 CCA amount will be $ 360,450". The UCC at December 31, 2021, would be $ 360,450, and the 2021 CCA will be $ 108,135. 1 - X 28, Self-Sti (similar - X lose Case a Case B that are eligit Since its incorporation, Lyndon Ltd. has been a CCPC. Lyndon's texable income was S755,500 for its taxation year ending December 31, 2020, and $811,600 for its taxation year ending December 31, 2021. Its Taxable Capital Employed in Canada was $11,550,000 for 2020 and S12.180,000 in 2021. Garrison Search Engine (GSE) has been a CCPC since its incorporation. GSE's taxable income in 2020 was $11.800 and $5,500 for 2021. The company has no Tax Payable for the taxation year ending December 31, 2021, or for any of the three preceding years. Its Taxable Capital Employed in Canada is $12.250,000 in 2020 and $14,650,000 In 2021, o the nearest Required: Determine Lyndon's SRED expenditure limit for the 2021 taxation year. nt tax credits found Print Done During 2021, the company incurred a number of expenditures that qualify for investment tax credits. $86,300 for qualified property in the Atlantic provinces $3,170,000 in current expenditures for SRED Required: Determine the amount of any refund that GSE will be entitled to as a result of these investment tax credits and any available carry forwards. Include in your answer any other related income tax consequences. 56. The cost bn curre - X Case C. Describe th Case C bderalt With respect to the payable of $ 80,100 Print Done In 2020, Birdie Inc. pays eligible salaries to 10 eligible apprentices. The total amount is $248,000, with five apprentices paid $14,900 each and five apprentices paid $34,700 each. In addition, on December 10, 2020, Birdie Inc. acquires $801,000 in Class 10 depreciable property on which a 10% investment tax credit is available. Assume that the investment tax credits available will be deducted against tax payable in the year they are earned. Required: Describe the 2020 and 2021 income tax consequences associated with the expenditures and claiming the related investment tax credits. Include in your solution the CCA for 2020 and 2021 for Case C
