Which of the following items is not deductible in calculating net business incom
ID: 2399005 • Letter: W
Question
Which of the following items is not deductible in calculating net business income for the current taxation year? (Canada)
An $11,000 legal fee paid for services rendered in conjunction with a new issue of the company’s common stock.
A $125,000 management bonus paid 125 days after the end of the corporation’s current taxation year.
An amount of $25,000 paid for planting large maple trees in various locations on the grounds of the company’s facilities.
A $10,000 contribution to a company pension fund.
A.An $11,000 legal fee paid for services rendered in conjunction with a new issue of the company’s common stock.
B.A $125,000 management bonus paid 125 days after the end of the corporation’s current taxation year.
C.An amount of $25,000 paid for planting large maple trees in various locations on the grounds of the company’s facilities.
D.A $10,000 contribution to a company pension fund.
Explanation / Answer
A- legal fees paid for services rendered in conjunction with a new issue of the company common stock is not the deductible expense
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