Alice Smith has provided you with the following information pertaining to her 20x0 taxes:
• The financial statements for Alice's dental practice reported a net income of $110,000.
• Amortization of $15,000 was reported in the expenses.
• Capital cost allowance has been accurately calculated at $12,500 and has not been accounted for in the financial statements.
Alice conducted scientific research and experimental development (SR&ED)in 20x0.She met with a CRA agent who verified that $40,000 of her expenditures were qualified SR&ED activities.These costs were treated as capital items on her financial statements.
• Alice raises sheep on her land at her home in the country.She had a farming loss of $9,000 in 20x0.
Required:
Calculate Alice's minimum net income for tax purposes for 20x0.

Question

Quizplus · Accepted Answer

The Answer of Alice Smith has provided you with the following information pertaining to her 20x0 taxes:
• The financial statements for Alice's dental practice reported a net income of $110,000.
• Amortization of $15,000 was reported in the expenses.
• Capital cost allowance has been accurately calculated at $12,500 and has not been accounted for in the financial statements.
Alice conducted scientific research and experimental development (SR&ED)in 20x0.She met with a CRA agent who verified that $40,000 of her expenditures were qualified SR&ED activities.These costs were treated as capital items on her financial statements.
• Alice raises sheep on her land at her home in the country.She had a farming loss of $9,000 in 20x0.
Required:
Calculate Alice's minimum net income for tax purposes for 20x0.

Alice Smith Has Provided You with the Following Information Pertaining