Prepared by Melissa Marginson for use in ACCT 486

Practice Problem - Taxable Income for a Corporation

Flowers Distributing Company, a Canadian controlled private corporation, was established ten years ago by Hugh Flowers. Its only business activity is the distribution of specialty gardening products to retailers across Canada. Hugh is a Canadian resident and is the sole shareholder of the Company. The Company has a fiscal year ending on December 31, and, for 2023, the Company's accountant produced the following Income Statement:

(see attached photo)