Taxable Capital employed in Canada $325,000 RDTOH balance $ 5,000 Dividends declared and paid in 2017 nil GRIP balance $ 11,750 Non capital loss balance carried over from 2015 $ 10,000 Capital Dividend account $ 6,000 Sales Revenue $600,000 Interest on Long term debt 25,000 Interest on Foreign Bank Account (note 1) 18,000 Eligible dividends from TDCanadatrust 15,000 Non eligible dividends from Rockstar Inc. (note 2) 50,000 Gain on Sale of Shares (note 3) 25,000 Total Revenue $733,000 Details that pertain to SIL at the end of December 31, 2018 are as follows: December 31, 2018. 2019 of $2,000,000, total revenue of $500,000. Its taxable capital was $350,000 at the end of Rockstar Inc has an active business of selling polished stones. It has total assets as of December 31, end. Its business number is 000000000RC0001. $1,200,000. Rockstar Inc. is situated in the same location as SIL. It also has a December 31, 2019 year SIL is the shareholder of 500 common shares of Rockstar Inc. The common shares have a book value of net assets of $300,000 on December 31, 2019. SIL is a retailer of stone and rock, for construction projects. All of its sales occur within Canada. It has person and also the signing officer. contacted with respect to matters concerning the companys books and records. He is the authorized Mr Sandrock, is the president and sole director of the company, and is the person who should be SIN 994994994. The company has 1000 common shares issued and outstanding, all of which are held by Randy Sandrock, 1990 in Toronto Ontario. number is 499499499RC0001. Its phone number is 4167466000. It was incorporated on February 25, Road, Toronto, ON M1M 1J1. Its Ontario corporation tax account number is 1234567, and its business Sandrock Industries Ltd (SIL) is a Canadian controlled private corporation, located at 1040 Rocky Shore Income Tax II Profile Assignment Income statement for the year ended December 31, 2019 is as follows: (pertaining to of a capital gain reported in 2016) Total cost of goods sold $250,000 Amortization expense 120,000 Other operating expenses 150,000 Income tax provision 40,000 Net income $173,000 Cash in the bank $100,000 Accounts receivable $ 50,000 Net Capital assets $150,000 Current Liabilities $ 50,000 Due to shareholder $ 75,000 Common shares $ 1,000 Retained earnings $174,000 Balance Sheet as at December 31, 2019 is as follows: $150,000 on June 25, 2013 and were sold for proceeds of $175,000. Note 3: On March 25, 2019, SIL sold 3,000 shares of TD Canadatrust. The common shares had cost $10,000 Note 2: As a result of paying this $50,000 dividend to SIL, Rockstar Inc received a dividend refund of Note 1: This interest is net of $2,000 in taxes withheld in Ireland. dividend allowable. designated as eligible. On September 15, 2019, SIL elected to pay the maximum capital 5. During 2019, SIL paid taxable dividends of $90,000. Of these dividends, $25,000 were was a new office suite costing $20,000. 4. A truck that cost $30,000 was sold for $10,000 during the year. The only fixed asset purchase c. Class 10 $100,000 b. Class 8 $130,000 a. Class 1 $246,000 3. Opening UCC balances included has been included in amortization expense. treated as a capital asset, to be amortized using the straight line method over 10 years. This 2. During the year, SIL incurred $20,000 in landscaping costs. For accounting purposes these were doubtful. e) Bad debts expenses including $3000 of accounts that are truly bad, and $2,500 which are d) Life insurance on the life of Mr Sandrock, $3,000 c) Meals and entertainment of $35,000 b) Penalties of $3,500 from CRA HST late payments. a) Charitable donations to Canadian Cancer Society in the amount of $5,000. 1. Other operating expenses include the following: Other information: You need to at the minimum, fill out schedule 1,2,3,5,6,7,8 and possibly a few more. You should have enough information to fill out the GIFI schedule 125, and schedule 100. corporate software program. Prepare the federal corporate tax return for SIL for the 2019 taxation year, using the Profile T2 REQUIRED: 31. 7. SIL paid quarterly income tax instalments of $10,000 each on March 31, June 30 Sept 30 and Dec is allocated to SIL. 6. SIL allocated $250,000 of the annual business limit to Rockstar Inc. The remaining business limit