Compare and contrast the self-cultivation philosophies in Buddhism and Yoga, especially the Buddha’s Eightfold Path and Patañjali’s Eight Limb Program (making clear the similarities and differences). Then explain what contemporary….
Accounting Intermediate Taxation
- Polytech Inc. calculated its Net Income for its Dec. 31st, 2019, year-end as follows:
Other income 100,000 A
Cost Of Goods Sold ($300,000) B
Selling And Administrative Costs ( 150,000) C
Amortization Expense ( 175,000) D
Other Expenses ( 125,000) (750,000) E
Income Before Tax Expense $350,000
Income Tax Expense: (75,000)
Net Income $275,000
- Other income consists of a capital gain.
- Cost of Goods Sold includes:
$ 15,000 in lower of cost or market adjustment
- Selling and Administrative Costs includes:
$ 30,000 in club memberships for senior management
$ 1,000 in interest on late tax installments
- Polytech Inc. amortizes the following assets:
- Building, 95% manufacturing use, 5% office use, with an ACB of $1.5 million and a UCC of $1.2 million on Jan. 1, 2019.
- Warehouse leased in 2014 for a 10-year term with an option for two 5-year renewals. Leaseholds improvements were made in 2014 for $100,000 and 2016 for $40,000.
- Manufacturing equipment (class 8) with a cost of $200,000 and a UCC on Jan. 1st, 2019, of $140,000. In December the company sold equipment for $500,000 which was originally purchased for $400,000. Replacement equipment was also purchased in December for $650,000.
- Other Expenses include:
$ 4,000 in 2019 year-end bonuses, paid on July 1st, 2020
$ 2,000 in bond amortization
$ 4,000 in incorporation costs
- Calculate minimum Net Income For Tax Purposes for the year ended Dec. 31, 2019;
- End of year tax account balances; and,
- Explain adjustments to GAAP income and any amounts that are unadjusted.
|Explanation of adjustments and unadjusted amounts.|
|Calculations and end of or year tax balances|
- One of Polytech Inc.’s manufacturing facilities burned down in February of 2019. An insurance settlement of $1.5 million was reached in August 2019. In October 2019, Polytech commenced construction of a new building which was completed in March 2020 at a cost of $2 million. The manufacturing facility had an ACB of $1.2 million and UCC of $0.9 million prior to the fire. Polytech Inc. will utilize the Replacement Property Rules.
Calculate the CCA for the year ended Jan. 31, 2020, and tax balances.