What are tax deductible from the income statement

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Reference no: EM132461130

Question 1: What are tax deductible from this income statement and balance sheet.

Assume the company is CCPC.

Appendix
Jump To It Inc. - Tax information
Extracts from income statement
For the year ended December 31
(in $
10000

Sales

Cost of Soles, (excluding depreciation)

2019

2018

$                    19,643

13,755

$ 15,470

10,904

Gross Profit

5,888

4,566

Operating Expenses:

 

 

Selling and general operating

3,896

2,936

General and administrative

337

300

Depreciation and amortization

232

181

 

4,465

3,417

Operating Income

1,423

1,149

Other Income

 

 

Interest and other income

237

118

Interest and other expenses

(125)

(72)

Earnings before taxes

1,535

1,195

Income taxes expense (recovery)

344

259

Net income

1,191

936

Retained earnings, beginning of year

2,615

1,829

Net income

1,191

936

Dividends

(150)

(150)

Retained earnings, end of year

3,656

2,615

Jump To It Inc. - Extracts from balance sheet (or

As at December

pn $'003s)

AUttS

Current:

Cosh and cash equivalents Short-term investments

Investment In Kids Place Inc. Receivables

Merchandise Inventory

Tax information

statement of financial position) 31

2019                              2018

37 89 350 468 3,187

21

100 327 424 2,180

 

4,131

3,052

Property, plant and equipment (net)

4,812

0,629

 

8,943

7,681

VabIlltles

 

 

Current:

 

 

Bonk indebtedness

25

324

Accounts payable and accruals

462

362

Deferred revenue

65

19$

Income taxes payable

211

189

 

763

1,070

Long term debt

1,247

720

Otter liabilities

177

176

 

2.187

1,966

Sharehoklers'equlty

 

 

Shore capital

3,100

3,100

Retained earnings

3,656

2,615

 

8,943

$    7.681

Additional information

The following were included in selling, general, and administrative expenses:

Charitable donations

$     3.000

Reserve for potential merchandise theft

7,500

Season tickets to the local Junior hockey team used for business

2,000

Stall Christmas party

4,500

Green fees for golf games with customers

4,000

Dinners attended with customers

3,250

Reference no: EM132461130

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