Solution Manual For Canadian Income Taxation 2024/2025 26th
Edition Author:William Buckwold, Joan Kitunen, Matthew Roman,
Abraham Iqbal||9781266002724||All Chapters 1-23||LATEST
VERSION||Available In PDF||Instant Download
FULL TEST BANK!!!
,3|Page
TABLE OF CONTENTS
Part 1 A Planning and Decision-Making Approach to Taxation
Chapter 1 Taxation—Its Role in Decision Making
Chapter 2 Fundamentals of Tax Planning
Part 2 An Overview of Income Determination and Tax for the Two Primary Entities
Chapter 3 Liability for Tax, Income Determination, and Administration of the Income Tax System
Chapter 4 Income from Employment
Chapter 5 Income from Business
Chapter 6 The Acquisition, Use, and Disposal of Depreciable Property
Chapter 7 Income from Property
Chapter 8 Gains and Losses on the Disposition of Capital Property—Capital Gains
Chapter 9 Other Income, Other Deductions, and Special Rules for Completing Net Income for Tax Purposes
Chapter 10 Individuals: Determination of Taxable Income and Taxes Payable
Chapter 11 Corporations—An Introduction
Part 3 The Corporate Structure
Chapter 12 Organization, Capital Structures, and Income Distributions of Corporations
Chapter 13 The Canadian-Controlled Private Corporation
Chapter 14 Multiple Corporations and Their Reorganization
Part 4 Other Forms of Business OrganizationChapter 15 Partnerships
Chapter 16 Limited Partnerships and Joint Ventures
Chapter 17 Trusts
Part 5 Selected Topics
Chapter 18 Business Acquisitions and Divestitures—Assets versus Shares
Chapter 19 Business Acquisitions and Divestitures—Tax-Deferred Sales
Chapter 20 Domestic and International Business Expansion
Chapter 21 Tax Aspects of Corporate Financing
Chapter 22 Introduction to GST/HST
Chapter 23 Business Valuations
, Buckwold, Kitunen, Roman and Iqbal, Canadian Income Taxation, 2023-2024 Ed.
CHAPTER 1:TAXATION― ITS ROLE IN BUSINESS DECISION MAKING
Review Questions
1. If Income Tax Is Imposed After Profits Have Been Determined, Why Is Taxation
Relevant To Business Decision Making?
2. Most Business Decisions Involve The Evaluation Of Alternative Courses Of
Action. For Example, A Marketing Manager May Be Responsible For Choosing A
Strategy For Establishing Sales In New Geographical Territories. Briefly Explain
How The Tax Factor Can Be An Integral Part Of This Decision.
3. What Are The Fundamental Variables Of The Income Tax System That Decision-
Makers Should Be Familiar With So That They Can Apply Tax Issues To Their
Areas Of Responsibility?
4. What Is An ―After-Tax‖ Approach To Decision Making?
. 1
Instructor Solutions Manual Chapter One
, 5|Page
Solutions To Review Questions
R1-1 Once Profit Is Determined, The Income Tax Act Determines The Amount Of Income
Tax That Results. However, At All Levels Of Management, Alternative Courses Of
Action Are Evaluated. In Many Cases, The Choice Of One Alternative Over The Other
May Affect Both The Amount And The Timing Of Future Taxes On Income
Generated From That Activity. Therefore, The Person Making Those Decisions Has
A Direct Input Into Future After-Tax Cash Flow. Obviously, Decisions That Reduce
Or Postpone The Payment Of Tax Affect The Ultimate Return On Investment And, In
Turn, The Value Of The Enterprise. Including The Tax Variable As A Part Of The
Formal Decision Process Will Ultimately Lead To Improved After-Tax Cash Flow.
R1-2 Expansion Can Be Achieved In New Geographic Areas Through Direct Selling, Or
By Establishing A Formal Presence In The New Territory With A Branch Office Or A
Separate Corporation. The New Territories May Also Cross Provincial Or
International Boundaries. Provincial Income Tax Rates Vary Amongst The
Provinces. The Amount Of Income That Is Subject To Tax In The New Province Will
Be Different For Each Of The Three Alternatives Mentioned Above. For Example,
With Direct Selling, None Of The Income Is Taxed In The New Province, But With A
Separate Corporation, All Of The Income Is Taxed In The New Province. Because
The Tax Cost Is Different In Each Case, Taxation Is A Relevant Part Of The Decision
And Must Be Included In Any Cost-Benefit Analysis That Compares The Three
Alternatives [Reg. 400-402.1].
R1-3 A Basic Understanding Of The Following Variables Will Significantly Strengthen A
Decision Maker's Ability To Apply Tax Issues To Their Area Of Responsibility.
Types Of Income - Employment, Business, Property, Capital
Gains Taxable Entities - Individuals, Corporations, Trusts
Alternative Business - Corporation, Proprietorship, Partnership,
Limited Structures Partnership, Joint Arrangement, Income
Trust
Tax Jurisdictions - Federal, Provincial, Foreign
R1-4 All Cash Flow Decisions, Whether Related To Revenues, Expenses, Asset
Acquisitions Or Divestitures, Or Debt And Equity Restructuring, Will Impact The
Amount And Timing Of The Tax Cost. Therefore, Cash Flow Exists Only On An After
Tax Basis, And, The Tax Impacts Whether Or Not The Ultimate Result Of The
Decision Is Successful. An After-Tax Approach To Decision-Making Requires
Each Decision-Maker To Think "After-Tax" For Every Decision At The Time The
Decision Is Being Made, And, To Consider Alternative Courses Of Action To
Minimize The Tax Cost, In The Same Way That Decisions Are Made Regarding
Other Types Of Costs.
Failure To Apply An After-Tax Approach At The Time That Decisions Are Made
May Provide Inaccurate Information For Evaluation, And, Result In A Permanently
Inefficient Tax Structure.
Edition Author:William Buckwold, Joan Kitunen, Matthew Roman,
Abraham Iqbal||9781266002724||All Chapters 1-23||LATEST
VERSION||Available In PDF||Instant Download
FULL TEST BANK!!!
,3|Page
TABLE OF CONTENTS
Part 1 A Planning and Decision-Making Approach to Taxation
Chapter 1 Taxation—Its Role in Decision Making
Chapter 2 Fundamentals of Tax Planning
Part 2 An Overview of Income Determination and Tax for the Two Primary Entities
Chapter 3 Liability for Tax, Income Determination, and Administration of the Income Tax System
Chapter 4 Income from Employment
Chapter 5 Income from Business
Chapter 6 The Acquisition, Use, and Disposal of Depreciable Property
Chapter 7 Income from Property
Chapter 8 Gains and Losses on the Disposition of Capital Property—Capital Gains
Chapter 9 Other Income, Other Deductions, and Special Rules for Completing Net Income for Tax Purposes
Chapter 10 Individuals: Determination of Taxable Income and Taxes Payable
Chapter 11 Corporations—An Introduction
Part 3 The Corporate Structure
Chapter 12 Organization, Capital Structures, and Income Distributions of Corporations
Chapter 13 The Canadian-Controlled Private Corporation
Chapter 14 Multiple Corporations and Their Reorganization
Part 4 Other Forms of Business OrganizationChapter 15 Partnerships
Chapter 16 Limited Partnerships and Joint Ventures
Chapter 17 Trusts
Part 5 Selected Topics
Chapter 18 Business Acquisitions and Divestitures—Assets versus Shares
Chapter 19 Business Acquisitions and Divestitures—Tax-Deferred Sales
Chapter 20 Domestic and International Business Expansion
Chapter 21 Tax Aspects of Corporate Financing
Chapter 22 Introduction to GST/HST
Chapter 23 Business Valuations
, Buckwold, Kitunen, Roman and Iqbal, Canadian Income Taxation, 2023-2024 Ed.
CHAPTER 1:TAXATION― ITS ROLE IN BUSINESS DECISION MAKING
Review Questions
1. If Income Tax Is Imposed After Profits Have Been Determined, Why Is Taxation
Relevant To Business Decision Making?
2. Most Business Decisions Involve The Evaluation Of Alternative Courses Of
Action. For Example, A Marketing Manager May Be Responsible For Choosing A
Strategy For Establishing Sales In New Geographical Territories. Briefly Explain
How The Tax Factor Can Be An Integral Part Of This Decision.
3. What Are The Fundamental Variables Of The Income Tax System That Decision-
Makers Should Be Familiar With So That They Can Apply Tax Issues To Their
Areas Of Responsibility?
4. What Is An ―After-Tax‖ Approach To Decision Making?
. 1
Instructor Solutions Manual Chapter One
, 5|Page
Solutions To Review Questions
R1-1 Once Profit Is Determined, The Income Tax Act Determines The Amount Of Income
Tax That Results. However, At All Levels Of Management, Alternative Courses Of
Action Are Evaluated. In Many Cases, The Choice Of One Alternative Over The Other
May Affect Both The Amount And The Timing Of Future Taxes On Income
Generated From That Activity. Therefore, The Person Making Those Decisions Has
A Direct Input Into Future After-Tax Cash Flow. Obviously, Decisions That Reduce
Or Postpone The Payment Of Tax Affect The Ultimate Return On Investment And, In
Turn, The Value Of The Enterprise. Including The Tax Variable As A Part Of The
Formal Decision Process Will Ultimately Lead To Improved After-Tax Cash Flow.
R1-2 Expansion Can Be Achieved In New Geographic Areas Through Direct Selling, Or
By Establishing A Formal Presence In The New Territory With A Branch Office Or A
Separate Corporation. The New Territories May Also Cross Provincial Or
International Boundaries. Provincial Income Tax Rates Vary Amongst The
Provinces. The Amount Of Income That Is Subject To Tax In The New Province Will
Be Different For Each Of The Three Alternatives Mentioned Above. For Example,
With Direct Selling, None Of The Income Is Taxed In The New Province, But With A
Separate Corporation, All Of The Income Is Taxed In The New Province. Because
The Tax Cost Is Different In Each Case, Taxation Is A Relevant Part Of The Decision
And Must Be Included In Any Cost-Benefit Analysis That Compares The Three
Alternatives [Reg. 400-402.1].
R1-3 A Basic Understanding Of The Following Variables Will Significantly Strengthen A
Decision Maker's Ability To Apply Tax Issues To Their Area Of Responsibility.
Types Of Income - Employment, Business, Property, Capital
Gains Taxable Entities - Individuals, Corporations, Trusts
Alternative Business - Corporation, Proprietorship, Partnership,
Limited Structures Partnership, Joint Arrangement, Income
Trust
Tax Jurisdictions - Federal, Provincial, Foreign
R1-4 All Cash Flow Decisions, Whether Related To Revenues, Expenses, Asset
Acquisitions Or Divestitures, Or Debt And Equity Restructuring, Will Impact The
Amount And Timing Of The Tax Cost. Therefore, Cash Flow Exists Only On An After
Tax Basis, And, The Tax Impacts Whether Or Not The Ultimate Result Of The
Decision Is Successful. An After-Tax Approach To Decision-Making Requires
Each Decision-Maker To Think "After-Tax" For Every Decision At The Time The
Decision Is Being Made, And, To Consider Alternative Courses Of Action To
Minimize The Tax Cost, In The Same Way That Decisions Are Made Regarding
Other Types Of Costs.
Failure To Apply An After-Tax Approach At The Time That Decisions Are Made
May Provide Inaccurate Information For Evaluation, And, Result In A Permanently
Inefficient Tax Structure.
