Marissa Moose is a self-employed tax accountant in Alberta. The current year’s income statement for Marissa’s business (determined according to generally accepted accounting principles) is as follows: Professional income $300,000 Other expenses ($121,000) Net Income $179,000 Included in Other Expenses are the following amounts: (a) A $5,000 contribution to the federal Liberal political party (b) Travel expenses of $15,000 for Marissa and her husband to go to Laguna Beach, CA on vacation (c) Accounting depreciation on furniture and fixtures is $1,000. The UCC in Class 8 is $12,000 (d) Golf course membership dues of $8,000 plus the cost of all meals purchased at the golf course for $2,000 (e) Salary of $90,000 paid to Marissa's husband for cleaning up the office occassionally (note: an average janitor's salary is $45,000) Required: Calculate net business income for tax purposes for Marissa's business. Explain any items not included in your calculations
Marissa Moose is a self-employed tax accountant in Alberta. The current year’s income statement for Marissa’s business (determined according to generally accepted accounting principles) is as follows: Professional income $300,000 Other expenses ($121,000) Net Income $179,000 Included in Other Expenses are the following amounts: (a) A $5,000 contribution to the federal Liberal political party (b) Travel expenses of $15,000 for Marissa and her husband to go to Laguna Beach, CA on vacation (c) Accounting
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