Low Tech Inc. is a Canadian-controlled private corporation (CCPC) with 2020 SR&ED expenditures of $885,000. In 2019, the Company's Taxable Capital Employed In Canada was $7 million, Determine their total investment tax credit for 2020 and indicate the amount that would be refundable. O A. The total credit would be $102,750. The refundable amount would be $102,750. OB. The total oredit would be $239,750. The refundable amount would be $239,750. OC. The total credit would be S239,750. The refundable amount would be $102,750. OD. The total credit would be $102,750. The refundable amount would be $102,750.

Low Tech Inc. is a Canadian-controlled private corporation (CCPC) with 2020 SR&ED expenditures of $885,000. In 2019, the Company's Taxable Capital Employed In Canada was $7 million, Determine their total investment tax credit for 2020 and indicate the amount that would be refundable. O A. The total credit would be $102,750. The refundable amount would be $102,750. OB. The total oredit would be $239,750. The refundable amount would be $239,750. OC. The total credit would be S239,750. The refundable amount would be $102,750. OD. The total credit would be $102,750. The refundable amount would be $102,750.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Amazon LTD reported the following tax attributes for the taxation year ending December 31, 2020.…

A: The goal of refundable dividend tax on hand accounts ("RDTOH") is to account for tax paid to avoid…

Q: Penguins Ltd had tax adjusted trading profits of £133,000 for the period ended 31 March 2021.…

A: Tax liability is the total income tax payable by the firm for the income generated during the year.…

Q: Based upon the information below, what is the value of the company as of 1/1/2021 (use the APV…

A: Here,…

Q: Required: Determine the dividend refund for 2022. Would the dividend refund change if Wrap Ltd. was…

A: To determine the dividend refund for 2022, we'll calculate the refundable portion of the Part I tax…

Q: Rainbow Co. is a Canadian controlled private corporation with active business income of $350,000 in…

A: A) Net income Particulars Amount Income from business 350000 Deduction (350000) Net loss…

Q: Marsden Inc., a Canadian public company, has 2020 Taxable Income of $362,000. It has permanent…

A: Given: The table is shown below as,

Q: Compute the amount of the bonus for 2022. 2. Orlando Company has a contract with its CEO to pay him…

A: The remuneration that is awarded to an employee in exchange for their services or their…

Q: K Ltd. paid an employee a tax-free travel allowance of $5,300 based on 9,000 kilometres of…

A: Tax-free allowance deduction refers to certain expenses or allowances that are excluded from an…

Q: Corporation VB was formed in 2019. Immediately prior to year-end, VB is considering a $500,000…

A: So, NPV of VB's after tax cashflow using a 5% discount rate if the expenditure is in 2019 is…

Q: Calculate ABM Ltd's tax payable or refundable

A: It has been given in the question that the ABM Ltd is the Australian resident company. For the year…

Q: Epic Inc. is a CCPC with a December 31 taxation year end. The following information relates to the…

A: Income tax payable is a term given to a business organization's tax liability to the government…

Q: Fitzroy Pty Ltd is an Australian company. During the 2020/21 financial year Fitzroy Pty Ltd had…

A: Tax payable = tax rate * (income - deductions)

Q: In 2019 alberta based corporationgrowth has $88,000 in taxable income and alberta based corporation…

Q: OMG is in a country which has a capital gains tax, conducted the following transactions: a.…

A: Capital Gain and LossThe amount earned on the sale of long-term assets like investment, tangible…

Q: accounting income (income sta eincome (tax return) : 25% s each year include $30 million fro e…

A: Taxable income refers to the sum value of money gained by an entity on which the authorized…

Q: llment Receivable at the end of 2022 equaled $20 million. and is expected to be collected equally in…

A: Income tax is a tax which is paid by the individuals or organizations on the income earned by them…

Question

Low Tech Inc. is a Canadian-controlled private corporation (CCPC) with 2020 SR&ED expenditures of $885.000. In 2019, the Company's Taxable
Capital Employed In Canada was $7 million. Determine their total investment tax credit for 2020 and indicate the amount that would be refundable.
OA. The total credit would be $102,750. The refundable amount would be $102,750.
OB. The total credit would be S239,750. The refundable amount would be $239,750.
OC. The total credit would be S239,750. The refundable amount would be $102,750.
OD. The totali credit would be $102.750. The refundable amount would be $102.750.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Provision

VIEW

Solution

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

XYW Corp., a Domestic Corporation, registered in 2010 made available the following financial information for taxable year 2021: Balance Sheet: Asset - Php 500,000 Liability - Php 100,000 Stockholders' Equity - Php 400,000 Income Statement: Gross sales - Php 100,000,000 Cost of sales – Php 60,000,000 Operating Expenses - Php 30,000,000 How much is the excess MCIT which can be carried forward in 2022? Consider CREATE Law Choices: Php 800,000 Php 2,100,000 Php 400,000 Php 0
In 2020, Ace Corporation reports gross income of $200,000 (including $150,000 of profit from its operations and $50,000 in dividends from less-than-20%-owned domestic corporations) and $230,000 of operating expenses. A. What is Ace’s NOL for 2020 B. Assume that Ace expects 2021’s taxable income to be $20,000 and 2022’s taxable income to be $100,000, both before any NOL deduction in the carryover year. What NOL deductions can Ace expect to claim in 2021 and 2022 C. How would your answer to Part b change if, in addition to the 2020 NOL, Ace also had a $5,000 NOL carryover from a loss occurring before 2018?
OMG is in a country which has a capital gains tax, conducted the following transactions: a. Purchased a building in February 2018 for $26,000,000. In March 2019, the company spent $2,000,000 to install solar panels for electricity in the building. The building was sold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,500,000. b. A motor vehicle was purchased for $5 million on January 1, 2018. The vehicle was sold in 2021 for $4.5 million. c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021 for $10 million. d. Purchased a government bond for $5,000,000 in 2018 and sold it for $7,500,000 in 2021. The company is entitled to an Annual Exemption of $500,000. Capital losses as of 1 January 2021 were $1,500,000. Calculate the capital gains tax in 2021, assuming a capital gains tax of 15%.
Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2021, Isaac had $676 million in sales of this type. Scheduled collections for these sales are as follows: 2021 $ 83 million 2022 137 million 2023 129 million 2024 162 million 2025 165 million $ 676 million Assume that Isaac has a 25% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses, what deferred tax liability would Isaac report in its year-end 2021 balance sheet?
A resident foreign corporation has the following income and expenses for the year: Philippines Abroad Gross sales P100,000,000 P40,000,000 Cost of sales 40,000,000 20,000,000 Operating expenses 30,000,000 12,000,000 1. How much is the income tax due assuming the taxable year is 2021?2. Assuming the corporation is a nonresident foreign corporation and the taxable year is 2021, how much is the income tax due?
J-Matt, Inc., had pretax accounting income of $331,000 and taxable income of $376,000 in 2021. The only difference between accounting and taxable income is estimated product warranty costs of $45,000 for sales in 2021. Warranty payments are expected to be in equal amounts over the next three years (2022–2024) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2023. Determine the amounts necessary to record J-Matt’s income taxes for 2021 and prepare the appropriate journal entry.
Sexton Company uses an Excel spreadsheet to track its account balances. When the company applies overhead to production for the month of May, how will the company’s account balances be affected on that spreadsheet? multiple choice Accounts Payable will increase. Work in Process will increase. Manufacturing Overhead will increase. Retained Earnings will decrease.
Can you help me calculate the Capital gains tax assuming a capital gains tax is 20%?