Taxation

Question 15: Solar Panels Inc. operated by Fred Holmes generated $700,000 in net income under GAAP. Included in this amount are: $70,000 of amortization expense $190,000 cost of goods sold $18,000 bond discount amortization; and The accountant also has calculated the following amounts for tax purposes Maximum CCA has been calculated at $55,000 for the year A terminal loss has been calculated at $18,000 The net income for tax purposes for Solar Panels Inc. should be reported as: A. $716,000 B. $715,000 C. 700,000 D. $727,000 Question 16: Patrick operates a proprietorship that generated $150,000 in income under GAAP. Included in this amount are: $7,000 of amortization expense $4,000 for bad debt expense calculated using the allowance method and the balance sheet approach $112,000 cost of goods sold; and $12,000 meals and entertainment with clients Patrick's Accountant calculated the maximum CCA as $10,000 for the year How much is Patrick's income for tax purposes? A. $159,000 B. $157,000 C. $153,000 D. $163,000 Question 15: Solar Panels Inc. operated by Fred Holmes generated $700,000 in net income under GAAP. Included in this amount are: $70,000 of amortization expense $190,000 cost of goods sold $18,000 bond discount amortization; and The accountant also has calculated the following amounts for tax purposes Maximum CCA has been calculated at $55,000 for the year A terminal loss has been calculated at $18,000 The net income for tax purposes for Solar Panels Inc. should be reported as: A. $716,000 B. $715,000 C. 700,000 D. $727,000 Question 16: Patrick operates a proprietorship that generated $150,000 in income under GAAP. Included in this amount are: $7,000 of amortization expense $4,000 for bad debt expense calculated using the allowance method and the balance sheet approach $112,000 cost of goods sold; and $12,000 meals and entertainment with clients Patrick's Accountant calculated the maximum CCA as $10,000 for the year How much is Patrick's income for tax purposes? A. $159,000 B. $157,000 C. $153,000 D. $163,000