Question

The Controller of Carriage House Inc, a Canadian Public Corporation, has prepared the accounting income statement for the year ended April 30, 2019:

Carriage House Inc
Income Statement
For the year ended April 30, 2019

Sales		995,000
Cost of Sales	523,000
Admin Expenses	185,000	(708,000)
Operating Income		287,000
Other income and expenses		55,000
		342,000
Provision for taxes		(102,000)
Net Income		240,000

Other Informations:

Included in the calculation of “Administrative expenses”:

Interest on late income tax payments	435
Amortization (maximum CCA of $149,500) see note 1 below	104,900
Club dues for the local country club	1,750
Federal Political contributions	2,500
Donations to registered charities	22,500
Property tax with respect to vacant land not being used in the course of business	3,000
Life insurance premium with respect to the President (the company is the beneficiary; not required for financing)	1,950

Note 1: Maximum CCA has been calculated to include the accelerated incentive investment introduced in the March 2019 budget

Included in the calculation of “Other income and expenses”:

Landscaping of the ground around new premise	4,800
Fees paid with respect to the investigation of a suitable site for the company’s manufacturing plant	5,500
Dividends received from taxable Canadian corporation	42,800
Gain from the sale of another piece of land, used in the business, sold for $200,000 in March (purchased for $73,800)	126,200
Loss on sale of investments held as capital property purchased for $85,000 and sold for $75,000	10,000

Loss carry forwards from 2018 are:

Non capital losses	73,800
Net capital losses (realized in 2013)	50,000

Required:

Please prepare a schedule reconciling the accounting net income to income for tax purposes and taxable income.

*Please answer in excel

Answer 1