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:
• Her dental practice generated $110,000 in income.$35,000 of this income consisted of unbilled work in progress.There was no unbilled work in progress in the prior year.Alice has made a Section 34 election.
• 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 her 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:

Scientific Management

A management theory that analyzes and synthesizes workflows to improve economic efficiency, especially labor productivity.

Detrimental

Refers to something that causes damage, harm, or a negative effect.

Managerial Control

The authority and processes through which managers direct and organize resources, activities, and people to achieve organizational goals.

Job Classifications

A system of categorizing and organizing jobs based on duties, responsibilities, and often, compensation levels.