question archive Tecniquip Limited is a public corporation whose head office is located in Toronto, Ontario
Tecniquip Limited is a public corporation whose head office is located in Toronto, Ontario
Subject:AccountingPrice: Bought3
Tecniquip Limited is a public corporation whose head office is located in Toronto, Ontario. The activities of the corporation are carried on through permanent establishments in the provinces of Ontario and Alberta, and in the United States. The following is an allocation of selected items for the fiscal year ended December 31, 2012 For the year ended December 31, 2012, Tecniquip Limited obtained the following results: Income from distribution operations in Ontario ………………………………. $1,000,000 Income from distribution operations in Alberta ………………………………….. 240,000 Income from distribution operations in the United States (before C$200,000 of U.S. taxes paid) …………………………………………………… 800,000 …………………………………………………………………………………..$2,040,000 Canadian-source interest income (investment) ……………………………………..12,000 Foreign-source investment income (before $3,000 in foreign tax with-held) ………20,000 Taxable capital gain…………………………………………………………………10,000 Taxable dividends from taxable Canadian corporations……………………………15,000 Net income under Division B…………………………………………………. $2,097,000 In computing income from distribution, the corporation claimed a deduction of $150,000 under subsection 37(1) of the Act for scientific research and experimental development (SR&ED). $100,000 of the deduction related to expenditures of a current nature and $50,000 was the cost of equipment purchased during the year for use by it in scientific research and experimental development carried on in Canada. No SR&ED expenditures are expected to be made in 2013. During the year, the corporation made charitable donations totaling $50,000 and claimed non-capital losses of $60,000 and the net capital losses carried forward from 1999 of $9,000. REQUIRED Compute the federal Part I tax payable and provincial tax at 11.5% for Ontario and 10% for Alberta, assuming that taxable income allocated to those provinces is the appropriate provincial tax base. Show all calculations, whether or not necessary to your final answer. View Solution:
Tecniquip Limited is a public corporation whose head office is
