Problem 19 - This company is a CCPC - Canadian Controlled Private Corporation!
ntroduction to Federal Income Taxation 100 $160,000 (80,000) 20,000 75,000 Canadian source Consulting income Advertising agency loss Rental income from warehouse fully rented on a five-year lease Retailing income Interest on outstanding accounts receivable in retailing business-. Recapture of CCA from sale of fixtures used in retailing business Interest income from five-year bonds 25,000 25,000 75,000 70,000 12,000 Taxable capital gain Dividends from non-connected taxable Canadian corporations $432,000 Division B net income for tax purposes Additional information RSS-PS Inc. made the following selected payments during the year: Scientific research and experimental development (current expenses) Charitable donations Taxable dividends $100,000 14,000 120,000 The balances in the tax accounts on December 31, 2016 were: Charitable donations from 2014 Non-capital losses from 2013 Net capital losses from 2013 Refundable dividend tax on hand Dividend refund for 2016 $1,000 56,000 12,000 20,000 9,000 RSs-PS Inc. allocated $370,000 of its $500,000 business limit to other associated corporations. The fnic research and experimental development expenditures of the associated group were r only scientific by RSS-PS Ine. were made Rob has asked you to: Cor put the federal Part I tax and provincial tax at a 1 15% rate on federal taxable income for (B) Compute the dividend refund for 2017 and the amount of any RDTOl to be carried forward. Carl owns 100% of the issued shares of Compunet. He inco the 2017 taxation year, and Problem 20 ovide computer consulting services to Vitamins Inc., a retailer of e incorporation of Compunet, Carl headed rporated Compunet ea r to energy-producing vitamins. Prior to the computer service division of are owned by Carl's cousin, Vine Sulee, received a degree in computer science Irom the University a coroputer cons Cart's daughter, April and has been employed by Compunet as her. They are the only en of Toronto in tnt since then. Sulee and Carl work of Compunet 2,875 ntroduction to Federal Income Taxation 100 $160,000 (80,000) 20,000 75,000 Canadian source Consulting income Advertising agency loss Rental income from warehouse fully rented on a five-year lease Retailing income Interest on outstanding accounts receivable in retailing business-. Recapture of CCA from sale of fixtures used in retailing business Interest income from five-year bonds 25,000 25,000 75,000 70,000 12,000 Taxable capital gain Dividends from non-connected taxable Canadian corporations $432,000 Division B net income for tax purposes Additional information RSS-PS Inc. made the following selected payments during the year: Scientific research and experimental development (current expenses) Charitable donations Taxable dividends $100,000 14,000 120,000 The balances in the tax accounts on December 31, 2016 were: Charitable donations from 2014 Non-capital losses from 2013 Net capital losses from 2013 Refundable dividend tax on hand Dividend refund for 2016 $1,000 56,000 12,000 20,000 9,000 RSs-PS Inc. allocated $370,000 of its $500,000 business limit to other associated corporations. The fnic research and experimental development expenditures of the associated group were r only scientific by RSS-PS Ine. were made Rob has asked you to: Cor put the federal Part I tax and provincial tax at a 1 15% rate on federal taxable income for (B) Compute the dividend refund for 2017 and the amount of any RDTOl to be carried forward. Carl owns 100% of the issued shares of Compunet. He inco the 2017 taxation year, and Problem 20 ovide computer consulting services to Vitamins Inc., a retailer of e incorporation of Compunet, Carl headed rporated Compunet ea r to energy-producing vitamins. Prior to the computer service division of are owned by Carl's cousin, Vine Sulee, received a degree in computer science Irom the University a coroputer cons Cart's daughter, April and has been employed by Compunet as her. They are the only en of Toronto in tnt since then. Sulee and Carl work of Compunet 2,875
