Question e

Sarah operates a proprietorship that generated $100,000 in accounting net income under GAAP. Included in this amount are:

• $4,000 for office rent expense;
• $7,000 of amortization expense;
• $112,000 cost of goods sold; and
• $12,000 meals and entertainment with clients.

Sarahs maximum CCA has been calculated at $10,000 for the year. How much is Sarahs business income for tax purposes?

	$113,000
	$109,000
	$103,000
	$107,000

Question f

In 2016, Kates Antiques deducted a reserve for doubtful debts of $14,000. During 2017, she had actual write-offs of $12,000 and recoveries of previously written off debts of $2,000. At the end of 2017, she deducted a reserve for doubtful debts of $15,000. Kates 2017 net deduction for bad debts would be:

	$13,000
	$10,000
	$11,000
	$15,000

Question g

Which of the following expenses would be denied as a deduction under the Income Tax Act?

	A speeding ticket received by a truck delivering goods for resale.
	Work space in a home costs for a self-employed contractor.
	The costs of disability related building modifications.
	A reserve for doubtful accounts.