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Unformatted text preview: IN-CLASS PROBLEMSCORPORATION INCOME TAXSUGGESTED SOLUTIONSPROBLEM 1(a) Net income for tax purposes $227,000Deduct:Donations to registered charities2004 $ 4,000 2005 61,500 Donations to the Crown 40,000 Dividends from taxable Canadian corporations 23,000 Non-capital losses 13,000Net capital losses 12,000153,500Taxable income$ 73,500(b) Amounts carried to 2006 Net capital losses: $16,600 - $12,000 = $4,600(c) Division b income $ —Net taxable capital gains 12,000 Dividends from taxable Canadian corporations 23,000Net income for tax purposes 35,000Deduct: Net capital losses$12,000Dividends from taxable Canadian corporations 23,00035,000Taxable income$ —Amounts carried to 2006:Non-capital losses: $13,000 + $45,000 = $58,000 Net capital losses: $16,600 - $12,000 = $4,600Donations to registered charities: $4,000 + $61,500 = $65,500 Donations to the Crown: $40,000PROBLEM 2Net Income for Tax Purposes$78,000Deduct:Dividends$14,000Charitable Donations - Current 3,000Crown Gift2,000Non Capital Loss...
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This note was uploaded on 10/19/2011 for the course TAX 4432 taught by Professor Don during the Spring '11 term at Dalhousie.
- Spring '11