Question 34

The followrng three independent cases involve the income tax consequences of incurring expenditures that are eligible for investment tax credits. View Case A. View Case B. View Case C. Case A. Determine Lyndon's SRED expenditure limit for the 2022 taxation year. What is Lyndon's 2022 expenditure limit? :| Case B. Determine the amount of any refund that GSE will be entitled to as a result ofthese investment tax credits and any available carry forwards. Include in your answer any other related income tax consequences (Round your answers to the nearestwhole dollar.) What refund is available to GSE? What amount can be carried forward? Determine the change in the cost ofqualified property in 2023. [Use parentheses or a minus Slgl'l for a negative value.) How does the cost of qualified property change in 2023? Determine the refundable tax credit on currentSRED expenditures that will e added to income in 2023. (Round your answer to the nearest whole dollar) What is the refundable tax credit? Case C. Describe the 2021 and 2022 income tax consequences assocrated With the expenditures and claiming the related investment tax credits. Determine the credit against 2021 tax payable that will be added to income in 2022 With respect to the apprentice salaries What is the credit against 2021 tax payable? Determine the 2022 credit against federal tax payable With respect to capital expenditures What is the credit against 2022 federal tax payable? Determine the 2021 and 2022 CCA amounts. as well as he UCC at December 31' 2022. \fCase A Since its incorporation, Lyndon Ltd. has been a CCPC. Lyndon's taxable income was $755,700 for its taxation year ending December 31, 2021, and $811,600 for its taxation year ending December 31, 2022. Its Taxable Capital Employed in Canada (TCEC) was $11,510,000 for 2021 and $12,210,000 in 2022 Required Determine Lyndon's SRED expenditure limit for the 2022 taxation year.Case B Glendale Search Engine (GSE) is a CCPC. GSE's taxable income in 2021 was $11,600 and $6,300 for 2022. The company has no federal income tax payable for the 2022 taxation year or for any of its three preceding taxation years. Its TCEC is $12,310,000 in 2021 and $14,590,000 in 2022. In 2022, the company incurred a number of expenditures that qualify for investment tax credits. * $85,600 for qualified property in the Atlantic provinces . $3,230,000 in current expenditures for SRED Required Determine the amount of any refund that GSE will be entitled to as a result of these investment tax credits and any available carry forwards. Include in your answer any other related income tax consequences.Case C In 2021, Buxton Inc. pays eligible salaries to 10 eligible apprentices. The total amount is $251,000, with five apprentices paid $15,300 each and five apprentices paid $34,900 each. In addition, on December 10, 2021, Buxton Inc. acquires $798,000 in Class 10 depreciable property on which a 10% investment tax credit is available. Assume that the investment tax credits available will be deducted against federal income tax payable in the taxation year in which they are earned. Required Describe the 2021 and 2022 income tax consequences associated with the expenditures and claiming the related investment tax credits. Include in your solution the CCA for 2021 and 2022 for Case C