Alice Smith has provided you with the following information pertaining to her 20x0 taxes:
- The financial statements for Alice's dental practice report a net income of $110,000.
- Amortization of $15,000 is 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. $40,000 of her expenditures are qualified SR&ED activities. These costs are currently reported as capital items on the balance sheet.
- Alice raises sheep on her land at her home in the country. She has 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 report a net income of $110,000.
- Amortization of $15,000 is 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. $40,000 of her expenditures are qualified SR&ED activities. These costs are currently reported as capital items on the balance sheet.
- Alice raises sheep on her land at her home in the country. She has 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