Karla Gomez is a Canadian resident who lives in Toronto. In the following two Cases, different...

 

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Karla Gomez is a Canadian resident who lives in Toronto. In the following two Cases, different assumptions are made with respect to the amounts and types of income she will include in her tax return for the current year. Information is also provided on the deductions that will be available to her for the year. Case One Karla had net employment income of $62,350. Unfortunately, her unin- corporated flower shop suffered a net business loss of $115,600. In contrast, she had a very good year in the stock market, realizing the following gains and losses: Capital Gains Capital Losses $97,650 5,430 Also during the current year, Karla made deductible contributions of $4,560 to her RRSP. Karla Gomez is a Canadian resident who lives in Toronto. In the following two Cases, different assumptions are made with respect to the amounts and types of income she will include in her tax return for the current year. Information is also provided on the deductions that will be available to her for the year. Case One Karla had net employment income of $62,350. Unfortunately, her unin- corporated flower shop suffered a net business loss of $115,600. In contrast, she had a very good year in the stock market, realizing the following gains and losses: Capital Gains Capital Losses $97,650 5,430 Also during the current year, Karla made deductible contributions of $4,560 to her RRSP.

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Answer 1Calculation of Net Income for Tax Purpose Sno Nature of Income Amou... View the full answer