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CHAPTER 18 TAX The depreciation expense and the book values for capital...

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Accounting

CHAPTER 18 TAX The depreciation expense and the book values for capital assets have been
correctly recorded in the financial statements:
DEPRECIATION EXPENSE CANNOT BE DEDUCTED AS AN EXPENSE ON THE TAX RETURN BUT
CCA CAN BE DEDUCTED ON THE TAX RETURN AS DONE IN CHAPTER 18. CCA IS GIVEN IN
POINT 8.
CHAPTER 18 TAX
CHAPTER 18 TAX In calculating income tax expense, the 2023 tax rate (20%) was multiplied by
the income before tax amount on the preliminary income statement.
Additional information to compute the income tax expense amount:
i. The company paid a hefty fine for $15,000 in 2023 which is not deductible for tax
purposes.
ii. The company paid $30,000 in 2023 for Casey Castle's membership at a private golf club.
This amount is not deductible for tax purposes
iii. Capital Cost Allowance (CCA) for 2023 is $325,000.
You remind yourself that there are other items mentioned previously that will affect the
computation of the income tax expense.
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