Question

1. In the current year C Inc. had the following expenses: $4,000 legal fee to register a mortgage on its office building, $7,000 for landscaping the land around the office building and $800 interest paid to CRA for late tax instalments. The legal fee and landscaping expenses were accrued and paid in the following year. Determine the amount that C’s net income for tax purposes will decrease in the current year due to these expenses.
Note: Do not place a minus sign in front of the amount.

Answer 1

Answer:

1). Legal fees to enroll contract on place of business is a capital use in this manner added to layer of place of business on which devaluation will be asserted.

Sum deductible = $0

2). Landscaping around the place of business is additionally a capital consumption consequently not deductible for duty reason.

Sum deductible = $0

3). Interest paid for late regulatory expense installment is for violation of law therefore not passable or deductible.

Sum deductible = $0

The sum that C's net pay for duty purposes will diminish in the present year because of these costs.