Alice Smith Has Provided You with the Following Information Pertaining

question 5

Essay

Alice Smith has provided you with the following information pertaining to her
20X0 taxes:
· The financial statements for Alice's dental practice reported a net income of
$110,000.
· $35,000 of the business revenues is from unbilled work in progress. There was no unbilled work in progress in the prior year. Alice has made a Section 34
election.
· Amortization of $15,000 was reported in the business' expenses.
Capital cost allowance has been accurately calculated at $12,500 and has not been accounted for in the financial statements.
· Alice conducted scientific research and experimental development (SR&ED) in 20X0. She met with a CRA agent who verified that $40,000 of her expenditures were qualified SR&ED activities. These costs were treated as capital items on he financial statements.
· Alice raises sheep on her land at her home in the country. She had a farming loss of $9,000 in 20X0.
Required:
Calculate Alice's minimum net income for tax purposes for 20X0.

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Definitions:

Collective Harm

Damage or negative impact that affects a group of people or community as a whole.

Social Traps

Situations in which individuals or groups, driven by immediate rewards, make decisions that are harmful to them and others in the long run.

Social-Responsibility Norm

A societal rule that urges people to help others who are dependent upon them or in need, based on the expectation of helping those who cannot help themselves.

Self-Disclosure

The act of revealing personal information, thoughts, and feelings to others.