Canadian Tax Principles Worksheet Assignment Essay
Order ID:89JHGSJE83839 Style:APA/MLA/Harvard/Chicago Pages:5-10 Instructions:
Canadian Tax Principles Worksheet Assignment Essay
Question-1
Cheapies Ltd. is a Canadian controlled private corporation (CCPC) with its head office in Toronto, Ontario. For tax purposes the Company has a December 31 year end. For the taxation year ending December 31, 2021 the Company had accounting income calculated in accordance with GAAP of $800,000. Other information related to the calculation of that income is as follows:
The Company deducted amortization expense of $50,000. It has been determined that the maximum CCA that is deductible for the year is $75,000. The Company intends to deduct this amount.
The GAAP income included an eligible dividend received from a taxable Canadian corporation in the amount of $35,000.
The Company deducted $11,000 in charitable donations during the year.
The Company deducted $25,000 in meals and entertainment for the year. It also deducted a $15,000 initiation fee for a corporate membership at Saddle Golf and Country Club.
Parking being extremely difficult in Toronto, the Company received $950 in parking tickets which were incurred in the course of meeting with clients. This amount has been deducted in its accounting records.
In 2021 the Company sold a building and the land upon which it was situated. The cost of the building, excluding the value of the land, was $350,000 and its UCC at the time of sale was 200,000. It was the only asset in the class. The building, excluding the value of the land, was sold for $450,000. In recording the transaction in its accounting records the Company recorded a gain of 300,000. The land upon which the building was situated was sold for its cost.
The estimated income tax expense of $75,000 was deducted in calculating GAAP income.
The Company landscaped its headquarters this year and capitalized this $10,000 cost. Beginning next year the Company plans on amortizing this $10,000 cost over a 10-year period.
Required:
Determine the Company’s minimum Net Income For Tax Purposes for its 2021 taxation year. YOU NEED TO CLEARLY SHOW FOR EACH ITEM WHETHER IT IS AN ADDITION OR A DEDUCTION. IF AN ITEM IS NEITHER AN ADDITION NOR A DEDUCTION, THEN PUT NIL FOR THAT ITEM. FOR FULL MARKS YOUR WORK MUST ALSO BE PROPERLY LABELLED.
Determine the Company’s minimum Taxable Income for its 2021 taxation year. Assume that in addition to the information provided above, that the Company had a Net Capital Loss Carry forward of $40,000. Determine the Company’s minimum Taxable Income for its 2021 taxation year.
Question-2
On January 1, 2019, Hyeyoung Lee had unused RRSP deduction room of $18,500. In addition, because she was unemployed in the two previous years, she had undeducted contributions of $14,700. She had no earned income for RRSP purposes in either 2017 or 2018. While she manages to live on accumulated savings during the year, she also has no 2019 earned income.
In 2020 she has several periods of part time employment and has earned income of $17,300. In addition, as the result of an incredible lucky streak at the blackjack tables in a Toronto Casino, she has accumulated winnings of over $100,000. In her excitement, on October 1, 2020, she makes a $20,000 contribution to her RRSP. As she had no income tax payable for the 2020 taxation year, she did not deduct any RRSP contributions in 2020.
In 2021, she finally finds full time employment, resulting in 2021 earned income of $45,000. She makes no further contributions in the year and claims her maximum RRSP deduction for 2021.
Required: YOU MUST SHOW ALL OF YOUR CALCUATIONS FOR FULL MARKS. FOR FULL MARKS YOUR WORK MUST ALSO BE PROPERLY LABELLED.
Determine Hyeyoung’s maximum RRSP deduction for 2021.
Determine any penalty tax that will be charged for 2021 for excessive RRSP contributions.
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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Canadian Tax Principles Worksheet Assignment Essay