Kasper Sales Ltd. (KSL), a retailer of men's ready-to-wear pants, commenced operations in 2020 with a December 31 year-end. The retail market is highly competitive. Due to KSL's lack of funds for adequate advertising and lack of good supply contracts, the corporation incurred losses in its first two years of operations as follows: non-capital losses net capital losses December 31, 2020 $200,000 Nil December 31, 2021 250,000 $10,000 On October 1, 2022 55% of the common shares of KSL were purchased by Fullers Ltd. (FL). FL has been very successful for a number of years in the business of wholesaling and retailing men's and women's jeans. FL intends to inject additional capital and retrain the management of KSL. FL is confident that with its expertise and track record it will be able to turn KSL's business around and make it profitable within two years. A financial statement was prepared for KSL for the nine months ended September 30, 2021. From this statement, it was determined that KSL had incurred a business operating loss for tax purposes of $54,000 for the period. The financial statement and tax records also revealed the following values of the assets owned by KSL on September 30, 2022: Cost UCC FMV Marketable securities $11,000 N/A $ 5,000 Inventory 50,000 N/A 45,000 Land 550,000 N/A 750,000 Building 95,000 $75,000 115,000 Store fixtures and equipment 35,000 35,000 27,000 

REQUIRED: 

Show all calculations necessary to support your conclusions. 

a. Determine the tax implications for KSL loss carry forward amounts for the year ended September 30, 2022. 

b. Determine business loss of KSL for the deemed year-end. 

c. Determine a capital loss that it is required to recognize for its taxation year ended on September 30, 2022

Answer rating: 100% (QA)

a To determine the tax implications for KSLs loss carryforward amounts for the year ended September 30 2022 we need to calculate the available noncapi... View the full answer