Question Duncan Ltd. is a Canadian-controlled private corporation owned by Mr. William Duncan. Mr. Duncan purchasedall shares of Duncan Ltd. on January 01 of the prior year for $500,000 in an arm’s length transaction. DuncanLtd. manufactures fabrics and will continue with its June 30 year end. The following is Duncan Ltd… Show more… Show moreg) An $80,000 bonus is included in salary and wages. The amount will be paid onAugust 15, next year.h) Included in the cost of goods sold is $50,000 incurred for the purpose of earningexempt income.i) On June 30 of the current year, Duncan Ltd. paid $100,000 to one of its tenantsto cancel a rental lease agreement because Duncan Ltd. required the space forits own business operations. The amount has been included in the rent expensefigure. The lease of property commenced on January 1 and had five yearsremaining at that time.Calculate the company’s income from a business for tax purposes for the year ended June 30.LawSocial ScienceTax law COMMUNICATION 101
