UNIVERSITY OF ALBERTA
SCHOOL OF BUSINESS
DEPARTMENT OF ACCOUNTING AND OIS
Accounting 468/668 - Corporate Income Tax
Winter 2016 Lecture B1/B2
Instructor:
Office:
Phone:
Email:
Kristie Dewald, CA
Bus 1-27D
780 492 9504
kristie.dewald@ualberta.ca
Office Hou

Solution to Assignment Problem Fourteen - 1
Solution to Assignment Problem Fourteen - 1
Part A - Non-Capital And Net Capital Losses
The required write-downs and the use of all available elections would have the following results:
Business
Income
Required

Solution to Assignment Problem Eleven - 2
Solution to Assignment Problem Eleven - 2
Before consideration of any carry backs, Dotty would have 2014 Taxable Income as
follows:
Net Taxable Capital Gains
Net Rental Income
Interest Income
Net Income For Tax Pu

Solution to Assignment Problem Fifteen - 1
Solution to Assignment Problem Fifteen - 1
The welding business should be incorporated for several reasons. These can be briefly described as
follows:
1.
The business is taxable and, since Mr. Caron does not need

Solution to Assignment Problem Twelve - 1
Solution to Assignment Problem Twelve - 1
1.
The adjustments here would be as follows:
2.
Add the donation of $45,000.
Deduct the accounting gain of $7,000 ($45,000 - $38,000).
Add the taxable capital gain of $1,5

Solution to Assignment Problem Seventeen - 1
Solution to Assignment Problem Seventeen - 1
Note To Instructor To answer this problem, a basic understanding of Section 85 rollovers is
required. This is covered in Chapter 16.
Part A - ITA 85.1 Applies
In ord

Solution to Assignment Problem Twenty-One - 4
Solution to Assignment Problem Twenty-One - 4
The sales are fully taxable. GST paid on the cost of balloons purchased and Operating Costs can be
claimed as an input tax credit. All other items are GST exempt.

Solution to Assignment Problem Sixteen - 3
Solution to Assignment Problem Sixteen - 3
Part A - Adjusted Cost Base Of Consideration
The adjusted cost base for each item of consideration, under the three alternatives, would be calculated
as follows:
Elected

Solution to Assignment Problem Thirteen - 2
Solution to Assignment Problem Thirteen - 2
Part IV Refundable Tax
The Part IV Tax Payable for Warron Inc. would be calculated as follows:
Dividend Refund Received By Delux Inc.
Warrons Percentage Of Ownership
P

Residence of Individuals
The average Canadian individual whose
job, family, dwelling place, and other
personal property are all in Canada, would
clearly be a Canadian resident and, as a
result, he would be liable for Canadian
taxation on his worldwide in