Spring Time Corp. has income before tax expense of $150,000 for 2019. $25,000 dividends were received in 2019. This amount is not taxable. A $5,000 fine expensed in 2019 is not deductible for tax purposes. CCA allowed for tax purposes in 2019 was $75,000; depreciation expense recorded in 2019 was $90,000. For years before 2019, total depreciation expense was higher than total CCA by $50,000. QUESTION On the reconciliation between accounting income and taxable income, how would the $5,000 non-deductible fine be shown? Select one: a. deduct $5,000 under temporary differences b. deduct $5,000 under permanent differences c. add $5,000 under temporary differences d. add $5,000 under permanent differences e. do not show on the reconcilation

1. Spring Time Corp. has income before tax expense of $150,000 for 2019.
2. $25,000 dividends were received in 2019. This amount is not taxable.
3. A $5,000 fine expensed in 2019 is not deductible for tax purposes.
4. CCA allowed for tax purposes in 2019 was $75,000; depreciation expense recorded in 2019 was $90,000.
5. For years before 2019, total depreciation expense was higher than total CCA by $50,000.

QUESTION

On the reconciliation between accounting income and taxable income, what is the total adjustment needed

in 2019 for the depreciation and CCA amounts.

Select one:

a. deduct $15,000

b. add $15,000

c. add $35,000

d. add $50,000

e. add $65,000