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S: REQUIRED: 6. $3,000 of Advertising expense relates to a donation made by the corporation to the Canadian Cancer Society. Determine the Net Income for
S: REQUIRED: 6. $3,000 of Advertising expense relates to a donation made by the corporation to the Canadian Cancer Society. Determine the Net Income for Tax Purposes using the reconciliation method. You operate a professional services corporation. Below is your company's Income Statement prepared in accordance to GAAP. 1. $40,000 of sales is for services provided, but not yet collected from the customers. You will collect the money in early 2022. 2. CCA is $25,000. 3. $20,000 of Salaries related to a bonus declared on September 1, 2021, but not paid until June 1, 2022. 4. $1,000 of the M+E related to a Family Vacation to Disney Land and the remainder are costs to entertain clients. 5. $1,000 of Interest expense relates to interest charges for buying company capital assets and $1,500 relates to late payment fees to CRA. The remainder is for the company's line of credit with
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