• Prepare a schedule reconciling the accounting net income to income for tax purposes and taxable income. Indicate the amount, and type, of any carry overs that are available at the end of the year.
• AssumingthatthecompanyisaCCPCthroughouttheyearandisnotassociatedwithanyothercompany,theincomeearnedinCanadais89%,andactivebusinessincomeis$75,000,calculatetheminimumfederalPartITaxPayableforVideoMadnessInc.for2015.

The Check figure is given to us by the professor and it is $88185

Tax Assignment (Comprehensive Corporate Tax payable) The controller of Video Madness Inc. has prepared the accounting income statement for the year ended April 30, 2015: VIDEO MADNESS INC. INCOME STATEMENT FOR THE YEAR ENDED APRIL 30, 2015 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $995,000 Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $523,000 Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185,000 (708,000) Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $287,000 Other income and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000 $342,000 Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (102,000) Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $240,000 Other Information (1) Included in the calculation of ''Administrative expenses'': (a) Interest on late income tax payments . . . . . . . . . . . . . . . . . . . . . . . . . $ 435 (b) Amortization (maximum capital cost allowance of $149,500) . . . . . . . 104,900 (c) Club dues for the local Country Club . . . . . . . . . . . . . . . . . . . . . . . . . . 1,750 (d) Donations to registered charities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,500 (e) Property tax with respect to vacant land not being used in the course of the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 (f) Business meals and entertainment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000 (2) Included in the calculation of ''Other income and expenses'': (a) Landscaping of ground around new premise . . . . . . . . . . . . . . . . . . . . 4,800 (b) Dividends received from taxable Canadian corporation. . . . . . . . . . . . 42,800 (c) Gain from the sale of another piece of land, used in the business, sold for $200,000 in March (purchased for $73,800) . . . . . . . . . . . . . . . . . . . . 126,200 (e) Loss on sale of investments held as capital property purchased for $85,000 and sold for $75,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 (f) Foreign Business Income (net of $2,400 withholding) . . . . . . . . . . . 9,400 (3) Loss carry forwards from 2014 are: (a) Non-capital losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,800 (b) Net capital losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 REQUIRED 1) Prepare a schedule reconciling the accounting net income to income for tax purposes and taxable income. Indicate the amount, and type, of any carry overs that are available at the end of the year. 2) Assuming that the company is a CCPC throughout the year and is not associated with any other company, the income earned in Canada is 89%, and active business income is $75,000, calculate the minimum federal Part I Tax Payable for Video Madness Inc. for 2015