The following items may involve an adjustment of a corporation's accounting Net Income in order to arrive at the Net Income For Tax Purposes figure.
1. Premium amortization on the company's bonds payable was $5,600 for the current year.
2. The company incurred landscaping costs of $16,000 during the current year. For accounting purposes, these costs are being amortized at the rate of $1,600 per year.
3. The company sold a depreciable asset during the year for $145,000. The asset had a capital cost of $120,000 and a net book value of $85,000. It was not the last asset in its CCA class and the UCC of this class was $105,000 before the disposition. There were no other additions or dispositions during the year.
4. For accounting purposes, the company deducted $4,500 of interest charged on late tax instalments.
Required: Determine the addition and/or deduction that would be made in Schedule 1 for each of the preceding items.

Question

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The Answer of The following items may involve an adjustment of a corporation's accounting Net Income in order to arrive at the Net Income For Tax Purposes figure.
1. Premium amortization on the company's bonds payable was $5,600 for the current year.
2. The company incurred landscaping costs of $16,000 during the current year. For accounting purposes, these costs are being amortized at the rate of $1,600 per year.
3. The company sold a depreciable asset during the year for $145,000. The asset had a capital cost of $120,000 and a net book value of $85,000. It was not the last asset in its CCA class and the UCC of this class was $105,000 before the disposition. There were no other additions or dispositions during the year.
4. For accounting purposes, the company deducted $4,500 of interest charged on late tax instalments.
Required: Determine the addition and/or deduction that would be made in Schedule 1 for each of the preceding items.

The Following Items May Involve an Adjustment of a Corporation's