# sol12-7 - Problem 12-7S SOLUTION (A) Income from processing

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Unformatted text preview: Problem 12-7S SOLUTION (A) Income from processing operations................................................................................... \$ 75,250 Income from farming .......................................................................................................................................... 17,000 Royalties .......................................................................................................................................... 10,000 Income from SIB .......................................................................................................................................... 55,000 Net taxable capital gains (net TCG) .......................................................................................................................................... 15,000 Interest from bonds .......................................................................................................................................... 7,000 Taxable dividends (\$5K + 20K) .......................................................................................................................................... 25,000 Income from foreign business .......................................................................................................................................... 13,000 Income from foreign interest .......................................................................................................................................... 2,000 Income under Division B .......................................................................................................................................... \$219,250 Less: Charitable donations................................................................................................ \$19,000 Dividends from taxable Canadian corporations........................................................ 25,000 Restricted farm loss (limited to farm income).......................................................... 17,000 Non-capital loss........................................................................................................ 30,000 Net capital loss (limited to net TCG, above)............................................................ 15,000 (106,000) Taxable income .......................................................................................................................................... \$113,250 Tax @ 38% of \$113,250 .......................................................................................................................................... \$ 43,035 Less: Federal abatement on taxable income earned in a province (10% of \$92,250) ................................................................................................................................ (9,225) \$ 33,810 Additional refundable tax (Schedule 1) .....................................................................................................................................
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## This note was uploaded on 03/24/2012 for the course ACCOUNTING IAF841 taught by Professor Ganesh during the Spring '12 term at Seneca.

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sol12-7 - Problem 12-7S SOLUTION (A) Income from processing

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