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TULIPS LIMITED Tulips Limited ( TL ) is a Canadian controlled private corporation incorporated in Newfoundland and Labrador. TL is a seller of luxury hand
TULIPS LIMITED Tulips Limited TL is a Canadian controlled private corporation incorporated in Newfoundland and Labrador. TL is a seller of luxury handcrafted wooden furniture that TL buys from artisans all over the world. The company operates out of St John's NL and has been in business for over years.TL prepares its financial statements in accordance with ASPE and reported net business income before taxes of $ for its fiscal year ending December The following is additional information as it relates to the calculation of net income before taxes: The financial statements included a deduction for $ for donations to registered Canadian Charities Employee benefits expensed in the year included $ for golf memberships for TLs account managers and company executives. General and administrative items expensed for accounting purposes includes: a Cost of investigating a site for a proposed warehouse site was rejected $ b Client meals and entertainment $ c Company holiday party $ d Warranty accrual of $actual costs in the year were $ Professional fees expensed in the year included a Audit fees $ b Legal fees for general corporate affairs $ c Legal fees to enforce collection of overdue accounts receivable $ d Financing fees relating to obtaining new capital assets $ The UCC balances on January were: a Class nonresidential $ b Class $ c Class $ d Class nil TL had the following capital asset additions and disposals during the year a A luxury automobile was purchased for $ignore HST for the company's CFO. b Permanent landscaping around the company's building completely paid for but added to a capital asset on the financial statements$ d Small tools having an aggregate cost of $ were sold off for proceeds of $ e New furniture and fixtures were acquired for $ in the year. Old fixtures originally costing $ were disposed for proceeds of $ f $ was spent to acquire a patent for a new proprietary lacquer formula that improves the water resistance and shine of outdoor furniture sold by TL The patent was acquired November and has a year life. g For accounting purposes, the dispositions of the, fixtures, and small tools resulted in a net loss on disposal of assets of $ on the income statement. In addition to the net business income in TL also had the following income. Capital gains from the sale of investments public company shares $ Taxable dividends from Canadian public companies $ Taxable dividends from Rose Limited $ Interest earned on five year bonds $ Tulips Limited owns of the shares of Rose Limited, a CCPC For the current year, Rose Limited claimed the smallbusiness deduction on $ of its active business income. Additional information: Net capital losses at the end of Year carried forward were $ Noncapital losses at the end of Year carried forward were $ At the end of TL had a balance in its noneligible refundable dividend tax on hand NERDTOH of $ eligible refundable dividend tax on hand ERDTOH of $ and GRIP of $ Rose Limited received a dividend refund of $ from its NERDTOH when it paid its dividend of $ to TL received a noneligible dividend refund of $ in based on dividends paid that year. Eligible dividends of $ were paid by TL on December The taxable capital of TL and Rose Limited, combined, is always below $ In the combined adjusted investment income was below $ Determine Tulip Limited's GRIP balance the end
TULIPS LIMITED
Tulips Limited TL is a Canadian controlled private corporation incorporated in Newfoundland
and Labrador. TL is a seller of luxury handcrafted wooden furniture that TL buys from artisans
all over the world. The company operates out of St John's NL and has been in business for over
years.TL prepares its financial statements in accordance with ASPE and reported net
business income before taxes of $ for its fiscal year ending December
The following is additional information as it relates to the calculation of net income before
taxes:
The financial statements included a deduction for $ for donations to registered
Canadian Charities
Employee benefits expensed in the year included $ for golf memberships for TLs
account managers and company executives.
General and administrative items expensed for accounting purposes includes:
a Cost of investigating a site for a proposed warehouse site was rejected $
b Client meals and entertainment $
c Company holiday party $
d Warranty accrual of $actual costs in the year were $
Professional fees expensed in the year included
a Audit fees $
b Legal fees for general corporate affairs $
c Legal fees to enforce collection of overdue accounts receivable $
d Financing fees relating to obtaining new capital assets $
The UCC balances on January were:
a Class nonresidential $
b Class $
c Class $
d Class nil
TL had the following capital asset additions and disposals during the year
a A luxury automobile was purchased for $ignore HST for the company's CFO.
b Permanent landscaping around the company's building completely paid for but added to a
capital asset on the financial statements$
d Small tools having an aggregate cost of $ were sold off for proceeds of $
e New furniture and fixtures were acquired for $ in the year. Old fixtures originally
costing $ were disposed for proceeds of $
f $ was spent to acquire a patent for a new proprietary lacquer formula that improves
the water resistance and shine of outdoor furniture sold by TL The patent was acquired
November and has a year life.
g For accounting purposes, the dispositions of the, fixtures, and small tools resulted in a net
loss on disposal of assets of $ on the income statement.
In addition to the net business income in TL also had the following income.
Capital gains from the sale of investments public company shares $
Taxable dividends from Canadian public companies $
Taxable dividends from Rose Limited $
Interest earned on five year bonds $
Tulips Limited owns of the shares of Rose Limited, a CCPC For the current year, Rose
Limited claimed the smallbusiness deduction on $ of its active business income.
Additional information:
Net capital losses at the end of Year carried forward were $
Noncapital losses at the end of Year carried forward were $
At the end of TL had a balance in its noneligible refundable dividend tax on hand
NERDTOH of $ eligible refundable dividend tax on hand ERDTOH of $ and
GRIP of $ Rose Limited received a dividend refund of $ from its NERDTOH
when it paid its dividend of $ to
TL received a noneligible dividend refund of $ in based on dividends paid
that year.
Eligible dividends of $ were paid by TL on December
The taxable capital of TL and Rose Limited, combined, is always below $ In the combined adjusted investment income was below $
Determine Tulip Limited's GRIP balance the end
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