8452 Log yardbarker, bucking, clipper, log sorting, and sawing8453 Forestry costscutting, firefighting supplies, scaling, and silviculture8454 Logging road costsroad clearing, ploughing, and grating8455 Stumpage costs8456 Royalty costsroyalties paid <strong>to</strong> holders <strong>of</strong> copyrights, movies, patents,performing rights, and trademarks, found in cost <strong>of</strong>sales8457 Freight in and dutycus<strong>to</strong>ms and excise duty8458 Inven<strong>to</strong>ry write downrevaluation <strong>of</strong> inven<strong>to</strong>ry and inven<strong>to</strong>ry adjustments8459 Direct cost amortization <strong>of</strong> tangible assetsamortization <strong>of</strong> leasehold improvements and amountsreferred <strong>to</strong> as depreciation shown in cost <strong>of</strong> sales8460 Direct cost amortization <strong>of</strong> natural resource assetsamounts referred <strong>to</strong> as depletion shown in cost <strong>of</strong> sales8461 Overhead expenses allocated <strong>to</strong> cost <strong>of</strong> salesamounts reported under cost <strong>of</strong> sales that are normallyconsidered operating expenses8500 Closing inven<strong>to</strong>ry8501 Closing inven<strong>to</strong>ry – finished goods8502 Closing inven<strong>to</strong>ry – raw materials8503 Closing inven<strong>to</strong>ry – goods in processclosing inven<strong>to</strong>ry – work in progress8518 Cost <strong>of</strong> salesrepresents <strong>the</strong> sum <strong>of</strong> all cost <strong>of</strong> sales amounts8519 Gross pr<strong>of</strong>it/lossrepresents <strong>the</strong> net amount <strong>of</strong> Item 8089 – Total sales <strong>of</strong>goods and services, less Item 8518 – Cost <strong>of</strong> sales – mayalso be referred <strong>to</strong> as gross marginOperating expenses8520 Advertising and promotion8521 Advertisingcatalogues, media expenses, and publications8522 Donationscharitable donations, donations <strong>to</strong> <strong>the</strong> crown, andpolitical donations8523 Meals and entertainmenttickets (<strong>the</strong>atre, concert, athletic event, etc.)8524 Promotionbooths, demonstrations/presentations, displays,prospectus, samples, and seminars (given)8570 Amortization <strong>of</strong> intangible assetsamortization <strong>of</strong> intangible assets such as deferredcharges, goodwill (prior <strong>to</strong> 2002), patents, franchises,copyrights, trademarks, organization costs, and researchand development costs8571 Goodwill impairment lossapplies <strong>to</strong> 2002 and subsequent tax years8590 Bad debt expenseallowance for bad debts, allowance/provision fordoubtful accounts, bad debt, bad debt written-<strong>of</strong>f,provision for bad debts, and reserve for bad debt8610 Loan lossesfor loans, mortgages, and o<strong>the</strong>r loan-type amountswritten <strong>of</strong>f8611 Provision for loan lossesprovision/allowance for loan, mortgage, or credit losses8620 Employee benefitsassociation dues, clothing allowance, lodging, payrolldeductions/levies/taxes, and room and board8621 Group insurance benefitsmedical, dental, and life insurance plans8622 Employer’s portion <strong>of</strong> employee benefitsCanada Pension Plan, company pension plan,Employment Insurance, Quebec Parental InsurancePlan, and Workers’ Compensation8623 Contributions <strong>to</strong> deferred income planscontributions <strong>to</strong> a registered pension plan, deferredpr<strong>of</strong>it sharing plan, employee pr<strong>of</strong>it sharing plan, andregistered supplementary unemployment benefit plan8650 Amortization <strong>of</strong> natural resource assetsamounts referred <strong>to</strong> as depletion8670 Amortization <strong>of</strong> tangible assetsamortization <strong>of</strong> leasehold improvements and amountsreferred <strong>to</strong> as depreciation8690 Insurancebonding, fire insurance, liability insurance, premiumexpenses, property insurance, and vehicle insurance8691 Life insurance on executivesinsurance policies where <strong>the</strong> beneficiary is <strong>the</strong>corporation ra<strong>the</strong>r than <strong>the</strong> estate <strong>of</strong> <strong>the</strong> executive8710 Interest and bank chargesfinance charges, bank charges, and interest payments oncapital leases8711 Interest on short-term debt8712 Interest on bonds and debenturesamortization <strong>of</strong> bond discounts8713 Interest on mortgagesamortization <strong>of</strong> mortgage discount or expense8714 Interest on long-term debt8715 Bank charges8716 Credit card chargesinterest on credit cards8717 Collection and credit costs8740 Interest paid (financial institutions)8741 Interest paid on deposits8742 Interest paid on bonds and debentures8760 Business taxes, licences, and membershipsbeverage licences, business charges, mo<strong>to</strong>r vehiclelicences and/or registration permits, and trade licences8761 Membershipsdues and subscriptions8762 Business taxesbusiness tax, provincial capital tax (excludingNova Scotia and <strong>New</strong> Brunswick taxes on largecorporations), bridge <strong>to</strong>lls, gross receipt tax, health andeducation tax, hospital tax, permits, road <strong>to</strong>lls, and taxeson leases8763 Franchise fees8764 Government fees20www.cra.gc.ca
8780 <strong>New</strong> Brunswick tax on large corporations8790 Nova Scotia tax on large corporations8810 Office expenses8811 Office stationery and supplies8812 Office utilitiesutility expenses related <strong>to</strong> an <strong>of</strong>fice such as electricity,gas, heating, hydro, and telephone8813 Data processingword processing8860 Pr<strong>of</strong>essional feesengineering fees, pr<strong>of</strong>essional services, and surveyor fees8861 Legal feeslawyer and notary fees8862 Accounting feesbookkeeping8863 Consulting fees8864 Architect feesarchitectural design and illustration fees and landscapearchitect fees8865 Appraisal feesreal estate and jewellery appraisal, and financialvaluation services8866 Labora<strong>to</strong>ry fees8867 Medical fees8868 Veterinary feesbreeding fees8869 Brokerage fees8870 Transfer feesland and property transfer fees8871 Management and administration fees8872 Refining and assay8873 Registrar and transfer agent fees8874 Restructuring costsreorganization costs8875 Security commission fees8876 Training expenseanimal training, management training, and staffdevelopment8877 Studio and recording8910 Rentalrental expenses for arena, boat/vessel/ship, coal andlumberyards, railway sidings, safety deposit box/vaults,and parking charges8911 Real estate rentalapartment, building, land, and <strong>of</strong>fice rentals8912 Occupancy costs8913 Condominium fees8914 Equipment rentalrental expenses for computer equipment, film, <strong>of</strong>ficemachines, and road and construction equipment8915 Mo<strong>to</strong>r vehicle rentals8916 Moorage (boat)dock and wharf space8917 S<strong>to</strong>ragerental expense for garages and warehouses8918 Quota rentalforestry and logging quota rental expenses8960 Repairs and maintenanceaircraft repairs and maintenance8961 Repairs and maintenance – buildingspremises upkeep8962 Repairs and maintenance – vehicles8963 Repairs and maintenance – boats8964 Repairs and maintenance – machinery andequipmentgas and power line repairs and maintenance9010 O<strong>the</strong>r repairs and maintenancejani<strong>to</strong>rial services, landscaping, and yard maintenance9011 Machine shop expense9012 Road costssnow removal costs9013 Securityalarm system and surveillance equipment repairs andmaintenance9014 Garbage removal9060 Salaries and wagesamounts not found in cost <strong>of</strong> sales such asadministrative salaries, casual labour, cost <strong>of</strong> livingallowance, down time, fees <strong>to</strong> employees, minimumwage levies, payroll remuneration, severance pay,supervision, and vacation pay9061 Commissions9062 Crew share9063 Bonusesincentive compensation9064 Direc<strong>to</strong>rs fees9065 Management salaries<strong>of</strong>ficers’ salaries9066 Employee salaries<strong>of</strong>fice salaries9110 Sub-contractscontract labour, contract work, cus<strong>to</strong>m work, and hiredlabour9130 Suppliesmedical supplies, veterinary drugs and supplies,wrapping and packing supplies9131 Small <strong>to</strong>ols9132 Shop expense9133 Uniforms9134 Laundrydry-cleaning9135 Food and catering9136 Fishing gear9137 Nets and traps9138 Salt, bait, and ice9139 Camp supplies9150 Computer-related expenses9151 Upgradeupdates <strong>to</strong> computer s<strong>of</strong>tware9152 Internet9180 Property taxesmunicipal and realty taxes9200 Travel expensesairfare, hotel rooms, travel allowance, travel, andaccommodationswww.cra.gc.ca 21