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A corporation must file a tax return every year. Expenses would be recorded on s125, the income statement. The net profit or loss would then transfers to s100. This means that a balance sheet and income statement must be completed from the company books before preparing the T2. CCA can be claimed for the year or the CCA for the year can be overridden to zero. What expenses to claim and when are accounting decisions that must be made before starting the T2 preparation.
Maybe others who have had this scenario in the past can add to this
Hope this helps
