The following information is available for Ryan Corporation: Assets at cost-$260,000 (8 year life, straight-line depreciation, no salvage value, purchased 2 years ago); Accumulated depreciation-$65,000.Accumulated CCA-$105,300; CCA rate-30%; meals and entertainment recorded in the books-$12,000; golf dues paid and expensed on the books-$5,000; pre-tax accounting income-$40,000.No CCA was taken during the current year.From the information provided above, what is the total amount of expenses that will never have an effect on taxable income (and thus never trigger any DTA/DTL amounts)?

Question

Quizplus · Accepted Answer

Golf dues of $5,000 and 50% of meals and entertainment expenses ($6,000) are not deductible for tax purposes, totaling $11,000.

The Following Information Is Available for Ryan Corporation: Assets at Cost-$260,000