During the taxation year ending December 31, 2019, Pointer Inc. sells a capital asset with an adjusted cost base of $226,000 for proceeds of $279,000. The Company provides the purchaser with a one year warranty and the Company estimates that it will cost $4,100 to fulfill the warranty provisions. On September 22, 2020, the Company spends $4,400 to fulfill the warranty provisions. Determine the effect of these transactions on Net Income For Tax Purposes for 2019 and 2020.

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The Answer of During the taxation year ending December 31, 2019, Pointer Inc. sells a capital asset with an adjusted cost base of $226,000 for proceeds of $279,000. The Company provides the purchaser with a one year warranty and the Company estimates that it will cost $4,100 to fulfill the warranty provisions. On September 22, 2020, the Company spends $4,400 to fulfill the warranty provisions. Determine the effect of these transactions on Net Income For Tax Purposes for 2019 and 2020.

During the Taxation Year Ending December 31, 2019, Pointer Inc