XYZ Inc has just completed its fiscal year ended December 31, 2020 Using GAAP, the accountant has determined that, for that taxation year, the Company has Net Income of $200,000 The accountant provides the following information that was used in the determination of the Net Income for Accounting Purposes Instructions For each question , provide the effect on the reconciliation of Net Income for Accounting Purposes to minimum Net Income for Tax Purposes Additions to Net Income for Accounting Purposes should be entered in the boxas a positive number (write only numbers, do not write sign) Deductions from Net Income for Accounting Purposes should be entered in the box asa negative number If the item would have noeffect on the reconciliation,enter the number0 (zero) in the box At the end of 2019, of accounts receivable of $100,000, a reserve for tax purposes of $24,577 was deducted During 2020 year, $2,987 of accounts receivable were actually written off At the end of 2020, the company expected $10,568 to be uncollectible and deducted that amount as a reserve for tax purposes Determine the nef effect of the reserve for doubtful debts On April 15 of 2020, the Company purchased a BMW for the exclusive use of the president The vehicle is not a Zero Emission Vehicle The car cost is $86,434 Determine the related CCA amount (i e the CCA's effect on NIFTP) Current Income Tax Expense in the amount of $18,237 was deducted to arrive at Net Income for Accounting Purposes On December 1 of the year, the Company purchased a franchise for $33,270 The franchise has a limited life of 10 years Determine the net effect of this CCA deduction on NIFTP A Senior VP of the company was reimbursed for her business travel using her own personal automobile She received $0 61 per kilometre for the 2,000 kilometres that she drove for business purposes This reimbursement was not included in her income as a taxable benefit The company 6 deducted the reimbursement as part of Travel Expenses in the calculation of Net Income for Accounting Purposes Golf club dues of $6,167 for several employees was deducted in the calculation of Net Income for Accounting Purposes The Company has a Class 1 balance of $360,618 at the beginning of 2020 This building qualifies for the 4 Class 1 rate During the year, the Company acquired another building at $138,032 which has been allocated to the same Class 1 Determine the effect of this Class 1's CCA deduction The company deducted an accounting loss of $3,564 arising from the sale of a delivery vehicle during the year The salary expense that was deducted for the year included a bonus payable to the Company's president in the amount of $16,969 It will be paid on February 1, 2021 The Company deducted Advertising and Promotion Expense that included $4,429 for sponsorship of a local hockey team and $3,180 for a donation to a local food bank (a registered charity)

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XYZ Inc. has just completed its fiscal year ended December 31, 2020. Using GAAP, the accountant has determined that, for that taxation year, the Company

XYZ Inc. has just completed its fiscal year ended December 31, 2020. Using GAAP, the accountant has determined that, for that taxation year, the Company has Net Income of $200,000. The accountant provides the following information that was used in the determination of the Net Income for Accounting Purposes:

Instructions:

For each "question", provide theeffect on the reconciliation of Net Income for Accounting Purposes tominimumNet Income for Tax Purposes.

Additionsto Net Income for Accounting Purposes should be entered in the boxas apositive number (write only numbers, do not write "+" sign).
Deductionsfrom Net Income for Accounting Purposes should be entered in the box asanegative number.
If the item would havenoeffecton the reconciliation,enterthe number0(zero) in the box.

At the end of 2019, of accounts receivable of $100,000, a reserve for tax purposes of $24,577 was deducted. During 2020 year, $2,987 of accounts receivable were actually written off. At the end of 2020, the company expected $10,568 to be uncollectible and deducted that amount as a reserve for tax purposes. Determine the nef effect of the reserve for doubtful debts.
On April 15 of 2020, the Company purchased a BMW for the exclusive use of the president. The vehicle is not a Zero Emission Vehicle. The car cost is $86,434. Determine the related CCA amount (i.e. the CCA's effect on NIFTP).
Current Income Tax Expense in the amount of $18,237 was deducted to arrive at Net Income for Accounting Purposes.
On December 1 of the year, the Company purchased a franchise for $33,270. The franchise has a limited life of 10 years. Determine the net effect of this CCA deduction on NIFTP.
A Senior VP of the company was reimbursed for her business travel using her own personal automobile. She received $0.61 per kilometre for the 2,000 kilometres that she drove for business purposes. This reimbursement was not included in her income as a taxable benefit. The company 6. deducted the reimbursement as part of Travel Expenses in the calculation of Net Income for Accounting Purposes.
Golf club dues of $6,167 for several employees was deducted in the calculation of Net Income for Accounting Purposes.
The Company has a Class 1 balance of $360,618 at the beginning of 2020. This building qualifies for the 4% Class 1 rate. During the year, the Company acquired another building at $138,032 which has been allocated to the same Class 1. Determine the effect of this Class 1's CCA deduction.
The company deducted an accounting loss of $3,564 arising from the sale of a delivery vehicle during the year.
The salary expense that was deducted for the year included a bonus payable to the Company's president in the amount of $16,969. It will be paid on February 1, 2021.
The Company deducted Advertising and Promotion Expense that included $4,429 for sponsorship of a local hockey team and $3,180 for a donation to a local food bank (a registered charity).