QUESTION 19

Fred's Pizza business provides you the followingAccountingGAAPfinancial information for this year's businessincometax return:

Income Statement:

1. Revenue: $100,000
2. Meals and Entertainment: $10,000
3. Supply Expenses: $2,000
4. Depreciation Expenses: $5,000

Assets

Furniture (Class 8, 20%); UCC was $10,000;Purchase this year was $10,000anddisposed of furniture for proceeds of$10,000 and had an original cost of $5,000.

Building (Class 1, 4%); UCC was $100,000

The BusinessIncome tax profitto be inserted intoLine 13700is?

Ignore the Accelerated Investment Incentive.

QUESTION 20

This year, Company ABCpurchasesClass 8 (20%) Assets for $20,000, what is the maximum CCA for this year? (Hint - Accelerated Investment Incentive)

1. 1.$3,000
2. 2.$6,000
3. 3.$0
4. 4.$1,000

QUESTION 21

Which of the following statements isNOTcorrect with respect to an individual who qualifies for the eligible dependant tax credit? The individual must be:

1. related by blood, marriage, adoption, or common-law relationship.

2. living with the taxpayer in a self-contained domestic establishment

3. residing in Canada unless they are a child of the taxpayer

4. under 10 years oldat some time during the year

QUESTION 22

For this year, If Taxable Income, Line 26000 is $254,914, then Line70, on Page 7 of the T1 Income Tax Return is 84,122

1. True
2. False