Reference no: EM132972099

Consider the following information in respect to the financial statements for year ending September 30, 2020 of Punta Azul Ltd:

Net Income After Tax per financial statements ................................... $150,000
Provision for income tax - current .................................................. 25,000
Future ................................................... 130,000
Amortization expense ................................................................. 40,000
Reserve for doubtful accounts - deducted in 2019 .................................. 10,000
deducted in 2020 ............................... 15,000
Interest on income taxes paid after the due date .................................. 2,500
Bond interest expense (including annual discount amortization of $7,500
re bonds issued last year) ........................................................... 39,500
Landscaping costs re factory premises - debited to land account .............. 12,000

Required

Problem 1: Compute income for tax purposes for Punta Azul Ltd. For their fiscal year ending September 30, 2020.

Problem 2: Outline the proper GST/HST treatment by the corporation for the items presented