sol12-13 - Problem 12-13S SOLUTION (Past exam question: 45...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
SOLUTION (Past exam question: 45 minutes) Net income for income tax purposes $471,000 Less: Charitable donations (Note 1) $ 97,500 Dividends from taxable Canadian corporations ($29,000 + $38,000 + $9,000) 76,000 Non-capital losses 46,700 Net capital losses (limited to net taxable capital gains) 6,000 226,200 Taxable income $244,800 Summary of taxes payable Part I Tax Payable (Note 2) $ 37,353 Part IV Tax Payable (Note 6) 9,300 Dividend Refund (Note 8) (13,300 ) Net Federal Tax Payable $ 33,353 Notes : 1. Charitable donations : Charitable donations are limited to 75% of net income, i.e., $353,250. Unused charitable donations can be carried forward and claimed in any of the five subsequent taxation years. Therefore, the $97,500 donations from 2010 should be claimed. 2. Part I tax on taxable income : Taxable income $244,800 Tax @ 38% $ 93,024 Federal Tax Abatement (24,480) Small Business Deduction (Note 3) (41,616) Manufacturing and Processing Profits Deduction (Note 5) Nil
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/24/2012 for the course ACCOUNTING IAF841 taught by Professor Ganesh during the Spring '12 term at Seneca.

Page1 / 4

sol12-13 - Problem 12-13S SOLUTION (Past exam question: 45...

This preview shows document pages 1 - 2. Sign up to view the full document.

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