Calculate the paid tax, Taxation

Assignment Help:

Many years ago, in an effort to keep its costs down, Prince Enterprises hired a bookkeeper rather than a fully qualified accountant to prepare its accounting records and corporate tax returns. In a recent audit by Canada Revenue Agency of the past seven years it was discovered that the bookkeeper did not prepare the corporate returns properly.

For 2004 to 2009 inclusive, the bookkeeper calculated earnings before taxes correctly and paid the required 30% tax on these.   Prince enterprises is a Canadian controlled private corporation. The company uses CCA rates as its amortization rates. In 2010 the bookkeeper paid no taxes as there was a loss before taxes.

The earnings before taxes, capital gains (losses) and dividends received are as follows:

                                                          Capital                 Dividends

                                EBT                    Gains                   Received

2010                   ($  60,000)             $6,000                  $2,000

2009                     $135,000              $6,000                  $3,000

2008                     $  67,500            ($6,000)                 $7,000

2007                     $  75,000              $7,500                  $2,000

2006                     $120,000              $12,000                      0

2005                     $ 97,500                    0                      $3,000

2004                     $ 90,000               $9,000                  $4,000

Canada Revenue Agency has indicated that, after its review of the seven years of information, it will be notifying Prince Enterprises of how much tax is due.

How much tax was paid from 2004 to 2010 inclusive?

How much tax should have been paid from 2004 - 2010?


Related Discussions:- Calculate the paid tax

Income tax return, Use the following information to complete Phillip and Cl...

Use the following information to complete Phillip and Claire Dunphy's 2012 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. Ign

Justify the present budget deficit, Question 1: i) What is a public goo...

Question 1: i) What is a public good? Discuss how the free rider problem might be a problem in the provision of a public good. ii) What do we mean by ‘‘market failure''? Exp

The effect of the disposition, At the beginning of 2010,Marquee Inc. has tw...

At the beginning of 2010,Marquee Inc. has two assets in Class 10 . The balance in this class is $7,423. The cost of each asset in the class was $7,500. On June 30, 2011, one of the

Evaluate the accuracy of federal tax, A1 Evaluate the accuracy of the term ...

A1 Evaluate the accuracy of the term "New South" in describing the post-Civil War South, and discuss ways in which the term was and was not appropriate. A2 What was the Indian "

Tax credit for the elderly and disabled, Tax Credit for the Elderly and Dis...

Tax Credit for the Elderly and Disabled - Taxpayers age 65 or older or those under 65 who are retired with permanent and total disability are entitled to claim a credit to decrease

1040 project, how much will it be for a 1040 project?

how much will it be for a 1040 project?

Research, Assignment 1 (from chapter 1) Ahi Corporation is one of your clie...

Assignment 1 (from chapter 1) Ahi Corporation is one of your clients in Hawaii. The company had a good year last year and owes the IRS $100 million, due on March 15. There are no p

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd