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Wicked Witch Spells Limited has the following data: 2014 $ 35,000 2015 2016 ($65,000) $ 10,000 Oct 3,000 4,000 Star (62,000) 14,000 4,000 39,000 Taxable
Wicked Witch Spells Limited has the following data: 2014 $ 35,000 2015 2016 ($65,000) $ 10,000 Oct 3,000 4,000 Star (62,000) 14,000 4,000 39,000 Taxable income: 2013 Accounting income $ 21,000 Permanent difference: Golf club dues 2.000 Accounting income subject to tax 23,000 Temporary difference: Depreciation 26,000 CCA (23,000) Taxable income 26,000 Tax rate * 20% Income tax payable $ 5.200 26,000 26,000 (26,000) (32.000) 39,000 (68,000) x 20% * 30% $ 7.800 n/a* 26,000 (30,000) 10,000 x 35% $ 3,500 Required al CD be How much of the 2015 loss could Wicked Witch Spells use as a loss carryback? How much refund will he receive for 2015? How much is the tax loss carry forward at the end of 2015? How much is the tax benefit to be recorded at the end of 2015
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