What is vulko taxable income for fiscal

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Reference no: EM132942571

Vulko Corp. (Vulko) reported a loss of $332,000 for the year ended October 31, 2020. The following information is also available:

1. Vulko has been profitable over the past three years. Aggregate taxable income of $161,000 was reported, and income taxes amounting to $35,420 were paid.
2. At the beginning of fiscal 2020, Vulko's fixed assets had a net book value of $1,400,000. Depreciation of $155,000 was reported for fiscal 2020.
3. Vulko's sales team incurred meals and entertainment expenses of $15,000. Half of these costs are non-deductible for tax purposes.
4. Management has determined that 75% of any loss carryforwards would be more likely than not to be realized.
5. The UCC of Vulko's fixed assets was $930,000 on November 1, 2019. CCA applies at a rate of 20%.
6. Vulko was informed during the year that the tax rate applicable to its fiscal 2020 taxable income had increased to 25% from the previous 22%. Vulko reports under IFRS.

Required:

Problem (a) What is Vulko's taxable income for fiscal 2020?

Reference no: EM132942571

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