Question 22 (1 point)

Jennifer Jones is a self-employed building inspector. Jennifer maintains a home office that occupies 10% of the square footage of her home. The following costs were incurred by Jennifer to maintain her home in the current year:

Telephone (general line)	$600
House insurance	$2,000
Property taxes	$4,000
Heat, hydro, and maintenance	$5,000
Mortgage interest	$24,000

Jennifer estimates that she uses her telephone 50% for business purposes during the year. What is the maximum amount that Jennifer can claim for the costs incurred with respect to her home office?

Question 22 options:

a)

$500

b)

$1,100

c)

$3,500

d)

$3,800

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Question 23 (1 point)

Accounting net income (determined in accordance with generally accepted accounting principles) of Extec Inc. (Extec) is $456,000. Additional information is as follows: Extecs amortization expense for the year was $30,000. Maximum capital cost allowance (CCA) for the year was $25,400. Extec estimated and deducted $7,500 in warranty costs during the year. Actual warranty costs paid for providing warranties during the year were $4,600. Extec expensed $3,800 in charitable donations during the year. Based on the information above, determine Extecs net income for tax purposes for the year.

Question 23 options:

a)

$458,100

b)

$461,500

c)

$463,500

d)

$467,300