AQSol-CorpationT2

AQSol-CorpationT2 - $248,000 (d) Federal Part I Taxes...

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ASSIGNMENT QUESTIONS SUGGESTED SOLUTION CORPORATION T2 (a) Net Income for Tax Purposes Accounting net income $486,950 1 Add: 1/2 of capital gain $30,000 1 Charitable donations 40,000 1 Political donations 1,050 71,050 1 558,000 Deduct: Capital gain 60,000 1 Net income for tax purposes $498,000 (b) Active Business Income Net income for tax purposes $498,000 1 Deduct: Bond interest $20,000 1 Long-term rent 20,000 1 Dividend income 25,000 1 Taxable capital gain 30,000 95,000 1 Active business income $403,000 (c) Taxable Income Net income for tax purposes $498,000 1 Deduct: Donations — 20X6 $ 70,000 1 — 20X7 40,000 1 Dividends from taxable Canadian company 10,000 1 Non-capital loss 100,000 1 Net capital loss 30,000 250,000 1 Taxable income
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Unformatted text preview: $248,000 (d) Federal Part I Taxes Payable 38% of taxable income $ 94,240 1 Deduct: Small business deduction Active business income $403,000 Taxable income 248,000 Annual business limit 500,000 17% X $248,000 (42,160) 2 Federal abatement 10% X $248,000 (24,800 ) 1 Part I taxes payable $27,280 20 (e) Amounts Carried Forward Donations Non-Capital Net Capital Losses Losses Amounts carried from prior year $ 70,000 $100,000 $60,000 Added during the year 40,000 Available 110,000 100,000 60,000 3 Expired during the year Used during the year 110,000 100,000 30,000 Carried to following year $ $ $30,000 (f) 4.5% X $248,000 = $11,160 2 25...
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This note was uploaded on 01/07/2012 for the course ACCT 4453 taught by Professor Gorman during the Spring '11 term at Dalhousie.

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AQSol-CorpationT2 - $248,000 (d) Federal Part I Taxes...

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