Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

This note was uploaded on 10/19/2011 for the course TAX 4432 taught by Professor Don during the Spring '11 term at Dalhousie.

Page1 / 4


This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online