This problem is very loosely based on a Wolters Kluwer textbook question

Michelle Huang runs a rapidly expanding cosmetics store in Penticton as a sole$-$proprietorship.

She has provided you with the following information:

Income statement To Dec $31,2021$

Sales $ $520,000$

COGS $ $(350,000)$

Gross profit $ $170,000$

Sales, general & admin $ $(60,000)$

Amortization $ $(20,000)$

loss on sale of building $ $(15,000)$

Net income before income tax $ $75,000$

Provision for income taxes $ $(13,000)$

Net income after income taxes $ $62,000$

Other information:

$($a$)$ The fixed assets information for the company is as follows:

a$.$ UCC balances at January $1,2021$ were as follows:

i$.$ Class $1($Single building$)$ $$200,000$

ii$.$ Class $8($Multiple assets$)$ $ $60,000$

iii. Class $10($Multiple assets$)$ $ $80,000$

b$.$ During the year Michelle had the following transactions:

i$.$ On September $8$th$,2021$ a new building was purchased for $$700,000.$ The

cost of the related land was an additional $$400,000.$ It cost $$20,000$ to

pave part of the land for use as a parking lot, for accounting purposes the

$$20,000$ was added to the cost of the land. Although she will be using

most of the building for her business it qualifies as a rental property for

CCA purposes. Her first tenant began renting at the end of December

and she included the amount in sales.

This problem is very loosely based on a Wolters Kluwer textbook question

ii$.$ On December $8$th$,2021$ the original building was sold for $$220,000.$ The

original cost of the building was $$400,000$ and the net book value was

$$235,000.$

iii. New furniture and fixtures were purchased for $$25,000$ on October $15$th$,$

$2021.$ This purchase replaced office furniture which was sold for its

$$4,000$ net book value $($original cost $$10,000)$

$($b$)$ Michelle is eligible for the personal and spousal tax credits. Her spouse$$s NITP for the

year is $$3,000.$

$($c$)$ She contributed $$13,000$ to her RRSP in June $2021.$ The entire amount is deductible.

$($d$)$ The $$13,000$ accounting provision for income taxes has not yet been paid.

$($e$)$ Michelle has a non$-$capital loss of $$25,000$ and a net capital loss of $$5,000$ available from

her $2020$ tax return.

Please do the following $($and ignore provincial taxes and provincial credits$)$:

$1.$ Calculate Michelle$$s UCC at Jan $1,2022$ after considering additions, disposals and

CCA for $2019.$

$2.$ Calculate Michelle$$s net income for tax purposes for $20213,000$ using the S$3$

ordering rules

$3.$ Calculate taxable income

$4.$ Calculate taxes payable before credits

$5.$ Calculate taxes payable after credits

$6.$ Provide Michelle$$s filing and payment dates