tax question

G Dete eligible dividends H. Determine Oland's net federal Tax . 3 C D Assignment Problem Thirteen - 6 (Comprehensive Corporate Tax Payable) E Fancom Inc. is an Aberta corporation that qualifies as a Canadian controlled private For the taxation year ending December 31, 2020, the components of its Net VTV Purposes and Taxable income are as follows: F $ 328,000 40.800 31,200 49,900 16,500 21,000 $ 487,400 21,000 86,400) 13.900 Active Business Income /Note 1) Gross Foreign Business Income (Note 2) Gross Foreign Non-Business Income (Note 2) Interest On Long Term Investments Taxable Capital Gains (Note 3) Eigible Dividends Received On Portfolio Investment Net Income For Tax Purposes Eligible Dividends Received Charitable Contributions Net Capital Loss Carry Forward Deducted Non-Capital Loss Carry Forward Deducted Ass (CC Fall enc era nec Tas 1. 2 3. (263.000 $ 103,100 Taxable income Note 1 As determined by the Income Tax Regulations, $152,000 of this active business income was manufacturing and processing profits. As these amounts are allocated to a province that has a special rate for M&P profits, the company calculates the fedes M&P deduction Note 2 Foreign jurisdictions withheld $6,120 (15 percent) from the foreign business income and $7,800 (25 percent) from the foreign non-business income. Note 3 The $6,500 is one-half of a capital gain of $33,000. The gain resulted from a disposition of passive investments. Other Information: 1. During the year ending December 31, 2020, Fancom used its existing cash resources to P taxable dividends of $223,200. Of this total, $49,300 were designated as eligible 2. On January 1, 2020, Fancom had the following balances: Eligible RDTOH Non-Eligible RDTOH $14,000 GRIP NI $49.360 During 2019, Fancom designated $8,700 of its dividends as eligible. Capital Employed in Canada was $4,652,300 for 2019 3. For 2019, Fanoom's ADJUSTED Aggregate Investment Income was $36,450 Its 4. As determined by the Income Tax Regulations, B5 percent of Fancom's Taxable income of 5. Assume that the foreign business and non-business tax credits are equal to the be allocated to a Canadian province. taxes withheld Assignment Problem 579 lated to Requirt Show all of the calculations used to provide the following required information puding those for which the result is nil A Determine Fanoom's Part I Tax Payable for the year ending December 31, 2020 & Determine the refundable portion of Fancom's Part I Tax Payable for 2020 C Determine Fancom's Part IV Tax Payable for the 2020. Determine the December 31, 2020, balance in Fancom's GRIP E Determine the December 31, 2020, balances in Fancom's Eligible RDTOH and Non-Eigible F Determine Fancom's dividend refund for 2020, separately identifying the refund related to gible dividends and the refund related to non-cigible dividends ompany . For Tax . Assignment row Comprehensive Corporate Tax Payable) Los a Canadian controlled private corporation with December 31 year end. For its your ndang December 31, 2020, its accounting Net Income Before Taxes, as determined using gen cally accepted accounting principles, was $1,029.700. Relevant information for the 2020 year necessary to make the appropriate reconciliation adjustments to Net Income For Tex Purposes. Taxable income, and federal Taxes payable is as follows Faiko's amortization expense was $494,500. Maximum deductible CCA for the year was $713,000. Company policy has always been to deduct the maximum available CCA 2. The company's revenues included foreign source investment income of $44,000. The amount received, however, was only C$36,080 as a result of foreign withholding income taxes of 18 percent, or $7920. The company only recorded the amount received as revenue. 3 Falko sold one of its buildings that required costly renovations in favour of leasing a building. The total sales price was $1.725,000 with $500,000 allocated to the land and $1.225,000 to the building. The original cost of the land and therefore its adjusted cost base was $650,000 The capital cost and adjusted cost base of the building was $1,000,000 and its UCC at the time of sale was $885,000. For accounting purposes the net book value of the building was $710,000. The company records accounting pains and accounting losses based on the net book value for the building and the original cost of the land. 4 During the yoor, the company earned the following amounts of Canadian source investment income, all of which have been included in net income for accounting purposes Interest On Long Term Investments $26 700 77500 Non-Eligible Dividends From A 100% Owned Subsidiary Eligible Dividends On Bank of Nova Scotia Shares 53,300 Falo is only associated with one company - its wholly owned subsidiary Lands ine za acquiring all of its shares in 2016. Lands received a dividend retund of $26.475 as a result of the dividends paid to Falko in 2020. Since Lands non eligible RDTOH was insufficient to recover all of the dividend refund it was forced to partially rely upon itselde RDTOH say Lands GRIP account balance was nil at year end, proventing it from designating any of the Ovidends paid to Falko as eligible. Of the dividend refund 43 percent was attributable to its Sigble RDTOH and 57 percent to its non-eligible ADTOH Company expenses for accounting purposes included (11539,800 spent on business mass and entertainment (2) a write-down of inventory for obsolescence beyond that permetted in valuing inventory for tax purposes, the e55 amount is $11.400: 31 de insurance Drums totaling $14,375 paid on the life of two of the principal shareholders, and 1 he 575000 esch. The bonuses were never ped Fancom Inc. is an Alberta corporation that qualities as a Canadian controlled private company For the taxation year ending December 31, 2020, the components of its Not Income For Tax Purposes and Texable income are as follows: Active Business Income (Note 1) $ 328.000 Gross Foreign Business Income (Note 21 40.800 Gross Foreign Non-Business Income Note 2) 31,200 Interest On Long Term Investments 49.900 Taxable Capital Gains (Note 3) 16,500 Eligible Dividends Received On Portfolio Investment 21.000 Net Income For Tax Purposes $ 487,400 Eligible Dividends Received 21.000) Charitable Contributions 86,4001 Net Capital Loss Carry Forward Deducted 13.900) Non-Capital Loss Carry Forward Deducted (263.0001 Taxable income $ 103, 100 Note 1 As determined by the Income Tax Regulations, $152.000 of this active business income was manufacturing and processing profits. As these amounts are allocated to a province that has a special rate for M&P profits, the company calculates the federal M&P deduction Note 2 Foreign jurisdictions withheld $6.120 (15 percent) from the foreign business income and $7800 (25 percent) from the foreign non-business income. Note 3 The $6.500 is one half of a capital gain of $33,000. The gain resulted from a disposition of passive investments Other Information: 1. During the year ending December 31, 2020. Fancom used its existing cash resources to pay taxable dividends of $223.200 of this total $49,300 were designated as eligible 2. On January 1, 2020, Fancom had the following balances: Eligible RDTOH $14,000 Non Eligible RDTOH NI GRIP $49,360 During 2019, Fancom designated $8,700 of its dividends as eligible. 3 For 2019 Fancom's ADJUSTED Aggregate Investment Income was $36,450 Its Taxable Capital Employed in Canada was $4.652, 300 for 2019 4. As determined by the Income Tax Regulations, 85 percent of Fancom's Taxable income can be allocated to a Canadian province. 5. Assume that the foreign business and non-business tax credits are equal to the foreign taxes withheld Required: Show all of the calculations used to provide the following required information including those for which the result is nil A. Determine Fancom's Part I Tax Payable for the year ending December 31, 2020 B. Determine the returdable portion of Fancom's Part | Tax Payable for 2020 C. Determine Fancom's Part IV Tax Payable for the 2020 D. Determine the December 31, 2020. balance in Fancom's GRIP E Determine the December 31, 2020, balances in Fan.com's Eligible RDTOH and Non-Eligible RDTOH F Determine Fancom's dividend refund for 2020, separately identifying the refund related to eligible dividends and the refund related to non-eligible dividends. G Dete eligible dividends H. Determine Oland's net federal Tax . 3 C D Assignment Problem Thirteen - 6 (Comprehensive Corporate Tax Payable) E Fancom Inc. is an Aberta corporation that qualifies as a Canadian controlled private For the taxation year ending December 31, 2020, the components of its Net VTV Purposes and Taxable income are as follows: F $ 328,000 40.800 31,200 49,900 16,500 21,000 $ 487,400 21,000 86,400) 13.900 Active Business Income /Note 1) Gross Foreign Business Income (Note 2) Gross Foreign Non-Business Income (Note 2) Interest On Long Term Investments Taxable Capital Gains (Note 3) Eigible Dividends Received On Portfolio Investment Net Income For Tax Purposes Eligible Dividends Received Charitable Contributions Net Capital Loss Carry Forward Deducted Non-Capital Loss Carry Forward Deducted Ass (CC Fall enc era nec Tas 1. 2 3. (263.000 $ 103,100 Taxable income Note 1 As determined by the Income Tax Regulations, $152,000 of this active business income was manufacturing and processing profits. As these amounts are allocated to a province that has a special rate for M&P profits, the company calculates the fedes M&P deduction Note 2 Foreign jurisdictions withheld $6,120 (15 percent) from the foreign business income and $7,800 (25 percent) from the foreign non-business income. Note 3 The $6,500 is one-half of a capital gain of $33,000. The gain resulted from a disposition of passive investments. Other Information: 1. During the year ending December 31, 2020, Fancom used its existing cash resources to P taxable dividends of $223,200. Of this total, $49,300 were designated as eligible 2. On January 1, 2020, Fancom had the following balances: Eligible RDTOH Non-Eligible RDTOH $14,000 GRIP NI $49.360 During 2019, Fancom designated $8,700 of its dividends as eligible. Capital Employed in Canada was $4,652,300 for 2019 3. For 2019, Fanoom's ADJUSTED Aggregate Investment Income was $36,450 Its 4. As determined by the Income Tax Regulations, B5 percent of Fancom's Taxable income of 5. Assume that the foreign business and non-business tax credits are equal to the be allocated to a Canadian province. taxes withheld Assignment Problem 579 lated to Requirt Show all of the calculations used to provide the following required information puding those for which the result is nil A Determine Fanoom's Part I Tax Payable for the year ending December 31, 2020 & Determine the refundable portion of Fancom's Part I Tax Payable for 2020 C Determine Fancom's Part IV Tax Payable for the 2020. Determine the December 31, 2020, balance in Fancom's GRIP E Determine the December 31, 2020, balances in Fancom's Eligible RDTOH and Non-Eigible F Determine Fancom's dividend refund for 2020, separately identifying the refund related to gible dividends and the refund related to non-cigible dividends ompany . For Tax . Assignment row Comprehensive Corporate Tax Payable) Los a Canadian controlled private corporation with December 31 year end. For its your ndang December 31, 2020, its accounting Net Income Before Taxes, as determined using gen cally accepted accounting principles, was $1,029.700. Relevant information for the 2020 year necessary to make the appropriate reconciliation adjustments to Net Income For Tex Purposes. Taxable income, and federal Taxes payable is as follows Faiko's amortization expense was $494,500. Maximum deductible CCA for the year was $713,000. Company policy has always been to deduct the maximum available CCA 2. The company's revenues included foreign source investment income of $44,000. The amount received, however, was only C$36,080 as a result of foreign withholding income taxes of 18 percent, or $7920. The company only recorded the amount received as revenue. 3 Falko sold one of its buildings that required costly renovations in favour of leasing a building. The total sales price was $1.725,000 with $500,000 allocated to the land and $1.225,000 to the building. The original cost of the land and therefore its adjusted cost base was $650,000 The capital cost and adjusted cost base of the building was $1,000,000 and its UCC at the time of sale was $885,000. For accounting purposes the net book value of the building was $710,000. The company records accounting pains and accounting losses based on the net book value for the building and the original cost of the land. 4 During the yoor, the company earned the following amounts of Canadian source investment income, all of which have been included in net income for accounting purposes Interest On Long Term Investments $26 700 77500 Non-Eligible Dividends From A 100% Owned Subsidiary Eligible Dividends On Bank of Nova Scotia Shares 53,300 Falo is only associated with one company - its wholly owned subsidiary Lands ine za acquiring all of its shares in 2016. Lands received a dividend retund of $26.475 as a result of the dividends paid to Falko in 2020. Since Lands non eligible RDTOH was insufficient to recover all of the dividend refund it was forced to partially rely upon itselde RDTOH say Lands GRIP account balance was nil at year end, proventing it from designating any of the Ovidends paid to Falko as eligible. Of the dividend refund 43 percent was attributable to its Sigble RDTOH and 57 percent to its non-eligible ADTOH Company expenses for accounting purposes included (11539,800 spent on business mass and entertainment (2) a write-down of inventory for obsolescence beyond that permetted in valuing inventory for tax purposes, the e55 amount is $11.400: 31 de insurance Drums totaling $14,375 paid on the life of two of the principal shareholders, and 1 he 575000 esch. The bonuses were never ped Fancom Inc. is an Alberta corporation that qualities as a Canadian controlled private company For the taxation year ending December 31, 2020, the components of its Not Income For Tax Purposes and Texable income are as follows: Active Business Income (Note 1) $ 328.000 Gross Foreign Business Income (Note 21 40.800 Gross Foreign Non-Business Income Note 2) 31,200 Interest On Long Term Investments 49.900 Taxable Capital Gains (Note 3) 16,500 Eligible Dividends Received On Portfolio Investment 21.000 Net Income For Tax Purposes $ 487,400 Eligible Dividends Received 21.000) Charitable Contributions 86,4001 Net Capital Loss Carry Forward Deducted 13.900) Non-Capital Loss Carry Forward Deducted (263.0001 Taxable income $ 103, 100 Note 1 As determined by the Income Tax Regulations, $152.000 of this active business income was manufacturing and processing profits. As these amounts are allocated to a province that has a special rate for M&P profits, the company calculates the federal M&P deduction Note 2 Foreign jurisdictions withheld $6.120 (15 percent) from the foreign business income and $7800 (25 percent) from the foreign non-business income. Note 3 The $6.500 is one half of a capital gain of $33,000. The gain resulted from a disposition of passive investments Other Information: 1. During the year ending December 31, 2020. Fancom used its existing cash resources to pay taxable dividends of $223.200 of this total $49,300 were designated as eligible 2. On January 1, 2020, Fancom had the following balances: Eligible RDTOH $14,000 Non Eligible RDTOH NI GRIP $49,360 During 2019, Fancom designated $8,700 of its dividends as eligible. 3 For 2019 Fancom's ADJUSTED Aggregate Investment Income was $36,450 Its Taxable Capital Employed in Canada was $4.652, 300 for 2019 4. As determined by the Income Tax Regulations, 85 percent of Fancom's Taxable income can be allocated to a Canadian province. 5. Assume that the foreign business and non-business tax credits are equal to the foreign taxes withheld Required: Show all of the calculations used to provide the following required information including those for which the result is nil A. Determine Fancom's Part I Tax Payable for the year ending December 31, 2020 B. Determine the returdable portion of Fancom's Part | Tax Payable for 2020 C. Determine Fancom's Part IV Tax Payable for the 2020 D. Determine the December 31, 2020. balance in Fancom's GRIP E Determine the December 31, 2020, balances in Fan.com's Eligible RDTOH and Non-Eligible RDTOH F Determine Fancom's dividend refund for 2020, separately identifying the refund related to eligible dividends and the refund related to non-eligible dividends