Reference no: EM132178852

ASSIGNMENT

You have just been hired as a tax analyst specializing in Business Tax by Diodati, Kerrio and Pietrangelo LLP ("DKP") a major Canadian accounting firm.

As part of interview process DKP required you to complete a knowledge-based interview with specific tax concepts and rules. Jim was particularly impressed with your immediate understanding on how to prepare a corporate tax return (T2) and compute corporate income taxes. Jim Diodati, CPA, CA is the head tax partner at DKP and is excited to have you on board.

You have now completed your new hire orientation at DKP and Jim sends you an email to meet him in the firm's boardroom. You meet with Jim and he mentions that he wants to put you on the file of Angie's Amazing Getups Incorporated ("client"). This is a new client to the firm and Jim has negotiated a tax return preparation fee of $25,000.

Jim did some initial information gathering and found out the following:

The client incorporated on January 4, 2014, the address of the company is 1234 Fanshawe St, London Ontario, L2Y 4W3. The contact person and signing officer of the client is Angela Q. Snodgrass and her telephone number is 519-222-2222. The business number of the company is 1234567 RC 0001. The total amount of federal instalments in the current year were $205,000. Jim left the rest of the corporation information gathering for you to complete.

Prior to leaving the meeting Jim says he requires the following completed by Dec 5th, 2018 at 11:59pm. Can you complete the corporate tax return for the Client. In addition to the tax return I would like a memorandum explaining the adjustments, explanations or assumptions taken on the tax return (including Income Tax Act or other resource references) so it makes it easy for me to review over the Holidays. Lastly I would like for you to complete a client transmittal letter.

You are extremely eager and excited to get started on this engagement and you really want to impress Jim. You contact the client Angela Q. Snodgrass to gather more information. You and Angela had a great meeting, you wrote down all the notes from the meeting. The notes of your meeting can be found on pages 667-670 of the Byrd and Chen textbook (AP 13-8).

Required:

1) Prepare the 2017 corporate tax return for Angie's Amazing Getups Incorporated using Tax Profile software

2) Complete a memorandum that explains the adjustments, explanations or assumptions used in the corporate tax return. Where applicable use income tax act or other applicable references.

3) Complete a client transmittal letter addressed to the client.