Ottawa Corporation has accounting income for the year ended October 31, 2020 of $76,000. Included in this calculation are the following amounts: Meals and entertainment expenses Amortization and depreciation Landscaping costs Dividend from Canadian subsidiary Charitable donations $38,000 69,000 32,000 52,000 2,500 You have correctly determined CCA to be $61,000. What are the correct amounts for first, Net Income for Tax Purposes, and second, Taxable Income? O A. Net Income for Tax Purposes - $21,500; Taxable Income $19,000 O B. Net Income for Tax Purposes - $103,000; Taxable Income - $51,000. OC. Net Income for Tax Purposes - $105,500; Taxable Income - $51,000. O D. Net Income for Tax Purposes - $73,500, Taxable Income-$19,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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QUESTION 6
Ottawa Corporation has accounting income for the year ended October 31, 2020 of $76,000. Included in this calculation are the following amounts:
Meals and entertainment expenses
Amortization and depreciation
Landscaping costs
Dividend from Canadian subsidiary
Charitable donations
$38,000
69,000
32,000
52,000
2,500
You have correctly determined CCA to be $61,000. What are the correct amounts for first, Net Income for Tax Purposes, and second, Taxable Income?
O A. Net Income for Tax Purposes - $21,500; Taxable Income $19,000.
O B. Net Income for Tax Purposes - $103,000; Taxable Income $51,000.
OC. Net Income for Tax Purposes - $105,500; Taxable Income $51,000.
O D. Net Income for Tax Purposes - $73,500, Taxable Income - $19,000,
Transcribed Image Text:QUESTION 6 Ottawa Corporation has accounting income for the year ended October 31, 2020 of $76,000. Included in this calculation are the following amounts: Meals and entertainment expenses Amortization and depreciation Landscaping costs Dividend from Canadian subsidiary Charitable donations $38,000 69,000 32,000 52,000 2,500 You have correctly determined CCA to be $61,000. What are the correct amounts for first, Net Income for Tax Purposes, and second, Taxable Income? O A. Net Income for Tax Purposes - $21,500; Taxable Income $19,000. O B. Net Income for Tax Purposes - $103,000; Taxable Income $51,000. OC. Net Income for Tax Purposes - $105,500; Taxable Income $51,000. O D. Net Income for Tax Purposes - $73,500, Taxable Income - $19,000,
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