CORPORATE TAXES

CORPORATE TAXES

Organization : Vitality inc.

➢ Equipment :

· Purchased Jan.01, 2015

· Purchase price = 19,800$

· Assumptions : will use 7 years, residual value estimated at 6,300$, straight-line method

· Government depreciation rate = 15% declining balance method

· Sold on Jan.01 2020 = 8,400$

➢ 2020 transactions

· Sales : 75,000$

· Rent payment 9,500$

· Salaries payment 16,000$

· Electricity 11,000$

REQUIRED

➢ Prepare the net income for the year 2020 (based on accounting rule)

➢ Prepare the adjusted net income for the year 2020 as per government rules

➢ Prepare Federal reports as of Dec.31,2020

· Schedule 8

· Schedule 1

➢ Prepare Provincial reports as of Dec.31,2020

· CO-130.A

· CO-17.A.1