Question

In: Accounting

The following information is available for Ryan Corporation: Assets at cost - $160,000 (5 year life,...

The following information is available for Ryan Corporation: Assets at cost - $160,000 (5 year life, straight-line depreciation and purchased 4 years ago); NBV - $32,000 while UCC is $47,000 with a CCA rate – 30%; meals and entertainment recorded in the books - $10,000; golf dues paid - $2,500; accounting income - $90,000. Based on this information and a tax rate of 45%, what is taxable income?

114,508

115,400

104,508

51,930

Solutions

Expert Solution

Pretax accounting income                     90,000
Add
Accounting depreciation                     32,000
Meals & Entertaiment                     10,000
Less
Tax depreciation-47000*30%                   (14,100)
Golf dues paid                     (2,500)
Taxable income                  115,400
Option B is correct

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