1. The Sebago Shop Corp. sells art works on consignment in Winnipeg. The shares of Sebago Shop Corp. are all owned by Erica MacAvoy, a Canadian residing in Winnipeg.i (Click the icon to view the additional information.)RequiredDetermine Taxable Income and Part I Federal Tax Payable for the Sebago Shop Corp. for the year ending December 31, 2021.First, find the taxable income for Sebago Shop Corp. for the year ending December 31, 2021. (Round your answer to the nearest dollar.)The taxable income for the year is $Now, find the Part I federal tax payable for Sebago Shop Corp. for the year ending December 31, 2021. (Round your answer to the nearest dollar.)The Part I federal tax payable is $. Additional informationThe Sebago Shop Corp. has Net Income of $243,000 for the year endingDecember 31, 2021. Net income is composed of $219,000 in business income and$24,000 in taxable dividends from various investments in Canadian publiccompanies. None of the company's income qualifies for the M&P deduction.In May 2021, the Sebago Shop Corp. donated $45,000 to the CanadianIndigenous Art Foundation, a registered Canadian charity. There are no carryforwards of donations or losses, and the corporation paid no dividends in the year.Sebago is associated with another corporation. The associated companies haveagreed to share the business limit with Sebago's share being $139,000. Thecombined TCEC of Sebago and its associated corporation is less than $10 millionin both 2020 and 2021. The combined AAII of the two companies was $26,000 in2020.PrintDone

Taxable income refers to the total sum of money earned by an entity that is subject to the mandatory…

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peg. on to view the additional information.) e Income and Part I Federal Tax Payable for the Sebago Sh

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter25: Taxation Of International Transactions

Section: Chapter Questions

Problem 30P

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April Ltd. is located in Alberta, a province which does not participate in the HST program and has no provincial sales tax. All of its operations are in that province. During its current quarter, April Ltd. purchases an office building and land for a total of $1300000 before GST. The Company spends an additional $266000 (before GST) on office equipment. Office equipment is capital personal property. The building will be used 20% for taxable supplies and the remainder for exempt supplies. The office equipment is to be allocated in the same ratio. For accounting purposes, the building will be amortized over 35 years, while the office equipment will be written off over 5 years. Determine the input tax credits that April Ltd. can claim as a result of these capital expenditures.
Ava has not yet filed her 2021 personal income tax returns (combined Federal and Quebec) and has asked you for help. For 2021, she provided you with the following: T4 tax slip from Hydro-Québec where she works as an engineer, reporting her 2021 gross annual salary of $105,000; T5 tax slip showing interest income received in 2021 of $1,500; On December 1, 2021, she sold 100 shares in Canadian Tire for $180/share (she had purchased 150 shares when they were at $110/share in 2019); Made a Tax-Free Savings Account (TFSA) contribution of $6,000 on January 1, 2021; Contributed the maximum to her Registered Retirement Savings Plan (RRSP) plan on May 15, 2021, when she received her company bonus (note that her 2020 earned income was $100,000; she maximizes her RRSP contribution each year and is not part of a company pension plan); Professional dues from the Order of Quebec Engineers that she can deduct in the amount of $945; and Has a capital loss of $60 from a previous year that she can…
Ava has not yet filed her 2021 personal income tax returns (combined Federal and Quebec) and has asked you for help. For 2021, she provided you with the following: -T4 tax slip from Hydro-Québec where she works as an engineer, reporting her 2021 gross annual salary of $105,000; -T5 tax slip showing interest income received in 2021 of $1,500; -On December 1, 2021, she sold 100 shares in Canadian Tire for $180/share (she had purchased 150 shares when they were at $110/share in 2019); -Made a Tax-Free Savings Account (TFSA) contribution of $6,000 on January 1, 2021; -Contributed the maximum to her Registered Retirement Savings Plan (RRSP) plan on May 15, 2021, when she received her company bonus (note that her 2020 earned income was $100,000; she maximizes her RRSP contribution each year and is not part of a company pension plan); -Professional dues from the Order of Quebec Engineers that she can deduct in the amount of $945; and -Has a capital loss of $60 from a previous year that she…
A resident citizen taxpayer sold share of stock of a domestic corporation though the local stock exchange at its fair market value amounting to P550,000. Cost of the shares sold is P300,000. Compute for the capital gains tax.
Which of the following statements concerning the tax treatment of interest income is true? a. Individuals must accrue interest on a daily basis. b. The anniversary day accrual method of recognizing interest income requires that interest income received by a corporation be recognized for tax purposes for every twelve-month period from the date the investment is made. c. Foreign interest income is exempt from taxes in Canada. d. The anniversary day accrual method of recognizing interest income requires that interest income received by an individual be recognized for tax purposes for every twelve-month period from the date the investments is made.
Individual A owns shares of a Canadian-controlled private corporation. All of the corporation's past income has been eligible for the small business deduction. The shares are valued at $400,000 and have an ACB and PUC of $160,000. In 2020, The corporation redeems the shares and A receives $400,000. What amount is included A's taxable income?
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Tom Cruiser is buying a single-family residence in Oakvile, Ontario, for $805,000. According to the land transfer tax affidavit , the value of the land, building, fixtures, and goodwill subject to land transfer tax is $800,000 and the value of chattels included in the transaction is $5,000. Calculate the land transfer tax and the harmonised sales tax (HST) payable on the transaction.
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A taxpayer registered in 2010 made available the following financial information for TY2021: Balance Sheet: Asset - Php 50,000,000 Liability - Php 30,000,000 Stockholders' Equity - Php 20,000,000 Income Statement: Gross sales - Php 10,000,000 Cost of sales – Php 6,000,000 Operating Expenses - Php 2,000,000 How much is the income tax due under CREATE Law if the taxpayer is a domestic corporation and uses itemized deduction as method of deduction?
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