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Required: Our client , Sheridan Ltd., has asked us to determine its 2020 minimum Net Income For Tax Purposes as well as the January 1, 2021 UCC for all of its CCA classes based on the following information in our file. Prepare Schedule 1 reconciliation schedule and related CCA calculations with its summary . You are not required to provide any ITA references . The following is the information in our file : For the year ending December 31, 2020 , the Income Statement of Sheridan Ltd., prepared in accordance with generally accepted accounting principles, is as follows: $974,000 Revenues Expenses Cost Of Goods Sold Selling And Administrative Costs Amortization Expense Other Expenses Income Before Tax Expense Income Tax Expense : Current Future Net Income ($ 272,000) ( 132,000 ) ( 156,000 ) ( 137.000) (697, 000)/(5277, 000) aligned (5 97,000\\ underline (32,000 aligned ) ) (129, 000)/(5148, 000) Other Information:

1. The Company spent $4,820 during the year on landscaping for its new buildingFor accounting purposes this was treated as an asset. The company will not amortize this balance as it believes the work has an unlimited life.

2. Selling And Administrative Costs include \$15,000 in business meals and entertainment.

3. Selling And Administrative Costs include membership fees for several employees in a local golf and country These fees total $3,300.

4. Other Expenses include contributions to registered charities of $ 3, 700

. 5. As the Company expects to issue more shares during 2021, it made a number of amendments to its articles of incorporation in 2020 and included the legal costs in Other Expenses. These costs totaled $6,000.

6. Other Expenses includes interest on late income tax instalments of $500 and on late municipal tax payments of $ 275.

7. On January 1, 2020, the Company has UCC balances for its tangible assets as follows: Class 1 Class 8 class 10 Class $400,000---(a) 575,000 ---(b) 45,000--- () 68,000 ---(d)

The Class 1 balance relates to a single building acquired in 2000 at a cost of 550,000. It is estimated that the value of the land at this time was 50,000. On February 1, 2020, this building is sold for $612,000. It is estimated that the value of the land is unchanged at $50,000. In the accounting records (, net book value)this real property was carried at $507,000, 457,000 for the building and $50,000 for the land. The resulting gain on the building is included in the accounting revenues.

b. There are no dispositions of Class 8 assets during the year. However, there are acquisitions in the total amount of $126,000 .

c As the Company has decided to lease all of its vehicles in the future, all of the assets in Class 10 are sold during the year (i.e., check Terminal loss. The capital cost of these assets was $93,000 and the proceeds of disposition amounted to $37,000. The net book value of these assets was $52,000 and the resulting accounting loss of $15,000 was included in Other Expenses.

d. The Class 13 balance relates to a single lease that commenced on January 1, 2018. The lease has an initial term of seven years, with two successive options to renew for three years each. Expenditures on this leasehold were $50,000 in 2018 and $27,000 in 2019. There were no further expenditures in 2020. The write-off of these expenditures for accounting purposes is included in Amortization Expense .

8.Sheridan Ltd. has always deducted the maximum CCA allowable in each year of operation.

Required: Our client, Sheridan Ltd., has asked us to determine its 2020 minimum Net Income For Tax Purposes as well as the January 1, 2021 UCC for all of its CCA classes based on the following information in our file. Prepare Schedule 1 reconciliation schedule and related CCA calculations with its summary. You are not required to provide any ITA references. rfile The following is the information For the year ending December 31, 2020, the income Statement of Sheridan Ltd., prepared in accordance with generally accepted accounting principles, is as follows: $974,000 ($272,000) ( 132,000) (156,000) Revenues Expenses: Cost Of Goods Sold Selling And Administrative Costs Amortization Expense Other Expenses Income Before Tax Expense Income Tax Expense: Current Future Net Income 37.000 (697.000 $277 (S 97.000) 32,000) (129,000) 148.000 Other Information: 1. The company spent $4.320 during the year on landscaping for its new building. For accounting purposes this was treated as an asset. The company we not amortize this balance as it believes the work has an unlimited Ufe 2. Selling And Administrative Costs include $15,000 in business meals and entertainment. 3. Selling And Administrative Costs include membership fees for several employees in a local golf and country dub. These fees total $3,300. 4. Other Expenses include contributions to registered charities of $3,700 S. As the company expects to issue more shares during 2021, it made a number of amendments to its articles of incorporation in 2020 and included the legal costs in Other Expenses. These costs totaled $6,000 6. Other Expenses includes interest on late income tax instalments of $500 and on late municipal tax payments of $275 7. On January 1, 2020, the Company has Uoc balances for its tangible assets as follows: Class 1 $400,000 ---(a) Class 8 575,000---(b) Class 10 45,000.-) Class 13 68,000.-d) 3. The Class i balance relates to a single building acquired in 2000 at a cost of $550,000. It is estimated that the value of the land at this time was $50.000. On February 2, 2020, this building is sold for $612,000. It is estimated that the value of the land is unchanged at $50,000. In the accounting records Ole net book value), this real property was carried at $507.000, $457.000 for the building and 550 000 for the land. The resulting gain on the building is included in the accounting revenues b. There are no dispositions of Class 8 assets during the year. However, there are acquisitions in the total amount of $126,000. c. As the Company has decided to lease all of its vehides in the future, all of the assets in Class 10 are sold during the year (i.e., check Terminal loss). The capital cost of these assets was $93,000 and the proceeds of disposition amounted to $37,000. The net book value of these assets was $52,000 and the resulting accounting loss of $15,000 was included in other Expenses. d. The Class 13 balance relates to a single lease that commenced on January 1, 2018. The lease has an initial term of seven years, with two successive options to renew for three years each. Expenditures on this leasehold were $50,000 in 2018 and $27,000 in 2019. There were no further expenditures in 2020. The write-off of these expenditures for accounting purposes is included in Amortization Expense, 8. Sheridan Ltd. has always deducted the maximum CCA allowable in each year of operation. Suggested response format [Depending on how you organize your response, Notes section may or may not be necessary Schedule 1 Reconciliation The calculation of SHERIDAN Ltd.'s Net Income For Tax Purposes would be as follows: CCA Calculations Maximum CCA and other related inclusions and deductions can be calculated as follows: Summary of CCA Results (Notes) The following is the information in our file: For the year ending December 31, 2020, the income Statement of Sheridan Ltd., prepared in accordance with generally accepted accounting principles, is as follows: $974,000 Revenues Expenses: Cost Of Goods Sold Selling And Administrative Costs Amortization Expense Other Expenses Income Before Tax Expense Income Tax Expense: Current Future Net Income ($272,000) (132,000) (156,000) 137.000) (697.000) $277,000 (S 97.000) (39,000 ( 129.000 $149.000 Other Information: Required: Our client, Sheridan Ltd., has asked us to determine its 2020 minimum Net Income For Tax Purposes as well as the January 1, 2021 UCC for all of its CCA classes based on the following information in our file. Prepare Schedule 1 reconciliation schedule and related CCA calculations with its summary. You are not required to provide any ITA references. rfile The following is the information For the year ending December 31, 2020, the income Statement of Sheridan Ltd., prepared in accordance with generally accepted accounting principles, is as follows: $974,000 ($272,000) ( 132,000) (156,000) Revenues Expenses: Cost Of Goods Sold Selling And Administrative Costs Amortization Expense Other Expenses Income Before Tax Expense Income Tax Expense: Current Future Net Income 37.000 (697.000 $277 (S 97.000) 32,000) (129,000) 148.000 Other Information: 1. The company spent $4.320 during the year on landscaping for its new building. For accounting purposes this was treated as an asset. The company we not amortize this balance as it believes the work has an unlimited Ufe 2. Selling And Administrative Costs include $15,000 in business meals and entertainment. 3. Selling And Administrative Costs include membership fees for several employees in a local golf and country dub. These fees total $3,300. 4. Other Expenses include contributions to registered charities of $3,700 S. As the company expects to issue more shares during 2021, it made a number of amendments to its articles of incorporation in 2020 and included the legal costs in Other Expenses. These costs totaled $6,000 6. Other Expenses includes interest on late income tax instalments of $500 and on late municipal tax payments of $275 7. On January 1, 2020, the Company has Uoc balances for its tangible assets as follows: Class 1 $400,000 ---(a) Class 8 575,000---(b) Class 10 45,000.-) Class 13 68,000.-d) 3. The Class i balance relates to a single building acquired in 2000 at a cost of $550,000. It is estimated that the value of the land at this time was $50.000. On February 2, 2020, this building is sold for $612,000. It is estimated that the value of the land is unchanged at $50,000. In the accounting records Ole net book value), this real property was carried at $507.000, $457.000 for the building and 550 000 for the land. The resulting gain on the building is included in the accounting revenues b. There are no dispositions of Class 8 assets during the year. However, there are acquisitions in the total amount of $126,000. c. As the Company has decided to lease all of its vehides in the future, all of the assets in Class 10 are sold during the year (i.e., check Terminal loss). The capital cost of these assets was $93,000 and the proceeds of disposition amounted to $37,000. The net book value of these assets was $52,000 and the resulting accounting loss of $15,000 was included in other Expenses. d. The Class 13 balance relates to a single lease that commenced on January 1, 2018. The lease has an initial term of seven years, with two successive options to renew for three years each. Expenditures on this leasehold were $50,000 in 2018 and $27,000 in 2019. There were no further expenditures in 2020. The write-off of these expenditures for accounting purposes is included in Amortization Expense, 8. Sheridan Ltd. has always deducted the maximum CCA allowable in each year of operation. Suggested response format [Depending on how you organize your response, Notes section may or may not be necessary Schedule 1 Reconciliation The calculation of SHERIDAN Ltd.'s Net Income For Tax Purposes would be as follows: CCA Calculations Maximum CCA and other related inclusions and deductions can be calculated as follows: Summary of CCA Results (Notes) The following is the information in our file: For the year ending December 31, 2020, the income Statement of Sheridan Ltd., prepared in accordance with generally accepted accounting principles, is as follows: $974,000 Revenues Expenses: Cost Of Goods Sold Selling And Administrative Costs Amortization Expense Other Expenses Income Before Tax Expense Income Tax Expense: Current Future Net Income ($272,000) (132,000) (156,000) 137.000) (697.000) $277,000 (S 97.000) (39,000 ( 129.000 $149.000 Other Information

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