prob12-13 (fall 2011 final review)

prob12-13 (fall 2011 final review) - Problem 12-13 (Text:...

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Problem 1 2-13 (Text: Chs. 11, 12) Billbo Ltd. is a Canadian company of which 85% is owned by Bill Jones and 15% is owned by his brother Bo. Both Bill and Bo are Canadian residents. The company is a leading manufacturer of high quality industrial hose. In addition to its manufacturing income, the company has various sources of other income. Its net income for income tax purposes for 2011 is set out below. Billbo Ltd. Income for Income Tax Purposes by Source for the Year Ended December 31, 2011 Income from manufacturing operations $230,000 Retailing income 30,000 Interest income: from banks 6,000 from treasury bills 7,000 from long-term bonds 17,000 from loan to Bag Inc. 19,000 from loan to Retail Ltd. 35,000 from accounts receivable outstanding for more than 30 days 14,000 Dividend income: from Bag Inc. received March 31 29,000 from Retail Ltd. received August 31 38,000 from sundry taxable Canadian public corporations received evenly throughout the year 9,000 Taxable capital gains: sale of equipment
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prob12-13 (fall 2011 final review) - Problem 12-13 (Text:...

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