CACC522-Week11-text

# CACC522-Week11-text - CACC522Week11 Quiz2#10...

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CACC522-Week11 20:07 Quiz 2 #10 gross up dividend 1.25 taxable capital gain – after ½ has been calculated allowable capital loss - after 1/2 has been calculated capital gain – before ½ has been calculated capital loss - before 1/2 has been calculated. Chap.11 questions. taxable income for corporations loss carryovers dividends donations Individuals loss carryovers Key Concept 2 a) Pty inc (12k div) 50000 b) Net taxable capital gains 10000 c) N/A D) Loss: Business (100000) Division B Net Tax(loss) Income (40000) Division C Dividends (12000) Donations Max 75% of NI=NIL –  5K  (carry forward 5 years) 0 Loss c/o – Capital Loss  (converts capital loss to a non- capital loss which is more  valuable) (10000) Non-capital loss (62000) Net Capital loss carry forward is the inclusion amount not the gross amount. Problem 1 P/E (perman ent Ta Ra To tal  Sa A % To Sa B % A+ B/ 2

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establis hment) te lar y le All oc ati on Fa ct or Man 12 % 12 00 K 85 .7 2 77 00 k 85 .5 6 85 .6 4 Alb 10 % 20 0k 14 .2 8 13 00 k 14 .4 4 14. 36 10 0 % 10 0 % 10 0 NIFTP Operations profits (1200k x 10K) 1210000 Dividend 80000 TCG 70000 NIFTP 1360000 inter-corporate dividends Deduct dividends (80000) CL Cfwd (70000) Non CL Cfwd (120000) Taxable Income (TI) 1,090,000 Corporate Tax rate Basic – 38% x TI (1090K) = 414,200 Abatement 10% x TI (1090K) = (109,000) provides room for provincial or territory to tax corporations. Does not apply to income from foreign  establishment of business. Sales in foreign country from head office are not foreign sales.
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CACC522-Week11-text - CACC522Week11 Quiz2#10...

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