MGAC50H3 Chapter Notes - Chapter 4: Photocopier, Office Supplies, Vehicle Insurance
Document Summary
Note to instructors: reference to schedule 1 of the t2 corporate tax return may be helpful in completing reconciliation problems. Legal and accounting expenses re issuance of shares (80% . Costs re bank loan (80% ,100) Appraisal cost for bank (80% ,100) $ 5,983,820: the reserve for inventory obsolescence, although called a reserve, is deductible since the amount is determined by identifying specific items that are obsolete and, therefore, is not a reserve or contingent liability [par. 20(1)(e. 2)]: the costs related to the wrongful dismissal charge are deductible as a cost of doing business. 18(1)(a)]: the repairs to the outside of the building are deductible as a cost of doing business as long as they are not enhancing the value of the building [pars. 18(1)(a), (b)] and the costs of landscaping are specifically allowed [par. 20(1)(aa)]: the interest on the municipal taxes is a cost of doing business [par.
