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:

Social Control

Mechanisms, strategies, and institutions society uses to maintain order, adherence to norms, and compliance with laws and rules.

Populace Recognizes

The acknowledgment or awareness by the general public or majority of people regarding certain facts, situations, or authorities.

Rulers

Individuals or tools for measuring length; or individuals who hold significant political power and authority over a country or territory.

Opposition

Resistance or dissent, expressed in action or argument, against prevailing ideas, policies, or entities in power.