What is the net income for tax purposes

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Question - A company's net income for financial statement purposes is $300,000. Included in this amount are the following: a $40,000 gain from the sale of Class 8 equipment for $60,000 that had an original cost of $330,000, and a net book value of $20,000; amortization expense of $25,000; and client entertainment expenses of $13,000. The undepreciated capital cost (UCC) of Class 8 at the beginning of the year was $8,000. The capital cost allowance (CCA) computed on all other depreciable assets was $7,500. What is the net income for tax purposes?

a) $336,000

b) $284,000

c) $290,500

d) $324,000

Reference no: EM132893212

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