The following financial information is provided for the 2021 taxation year for Angela Fowler: Interest income...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following financial information is provided for the 2021 taxation year for Angela Fowler: Interest income Net loss from retail store for the year ended December 31, 2021 Gain on sale of public corporation shares Loss on sale of shares of a CCPC qualified as a small business corporation Dividends from foreign corporations, net of $300 withholding tax Loss on sale of land that was originally purchased to build a rental property. The project was cancelled after a rezoning application was lost. Gain on sale of an oil painting Director's fees for attendance at corporate meetings Loss on sale of personal jewellery CPP enhanced contributions $ 20,000 (7,000) 8,000 (10,000) 2,700 (38,000) 4,000 6,000 5,000 133 In 2021, Angela gifted shares of a Canadian-controlled public corporation (CCPC) to her 16-year-old son. The shares, which originally cost $8,000, had a value of $10,000 at the time of the gift. Also in 2021, Angela had a rental loss of $3,000 (before amortization/depreciation and capital cost allowance). The property was originally purchased for $70,000 (land - $9,000, building - $61,000). The class 1 building had an unamortized capital cost of $50,000 at the end of the previous year. On the last day of 2021, Angela sold the property for $100,000 (land - $12,000, building - $88,000). In the previous year, by agreement, Angela obtained the exclusive licence to distribute a certain product in Canada. In 2021, she divided the country into six sales territories and sold 10-year sub-licences to individuals in each territory. Total proceeds were $24,000. Required: 1. Calculate Angela's net income for tax purposes for the 2021 taxation year in accordance with the aggregating formula of section 3 of the Income Tax Act. The following financial information is provided for the 2021 taxation year for Angela Fowler: Interest income Net loss from retail store for the year ended December 31, 2021 Gain on sale of public corporation shares Loss on sale of shares of a CCPC qualified as a small business corporation Dividends from foreign corporations, net of $300 withholding tax Loss on sale of land that was originally purchased to build a rental property. The project was cancelled after a rezoning application was lost. Gain on sale of an oil painting Director's fees for attendance at corporate meetings Loss on sale of personal jewellery CPP enhanced contributions $ 20,000 (7,000) 8,000 (10,000) 2,700 (38,000) 4,000 6,000 5,000 133 In 2021, Angela gifted shares of a Canadian-controlled public corporation (CCPC) to her 16-year-old son. The shares, which originally cost $8,000, had a value of $10,000 at the time of the gift. Also in 2021, Angela had a rental loss of $3,000 (before amortization/depreciation and capital cost allowance). The property was originally purchased for $70,000 (land - $9,000, building - $61,000). The class 1 building had an unamortized capital cost of $50,000 at the end of the previous year. On the last day of 2021, Angela sold the property for $100,000 (land - $12,000, building - $88,000). In the previous year, by agreement, Angela obtained the exclusive licence to distribute a certain product in Canada. In 2021, she divided the country into six sales territories and sold 10-year sub-licences to individuals in each territory. Total proceeds were $24,000. Required: 1. Calculate Angela's net income for tax purposes for the 2021 taxation year in accordance with the aggregating formula of section 3 of the Income Tax Act.
Expert Answer:
Answer rating: 100% (QA)
Angelas net income for tax purposes for the 2021 taxation year can be calcula... View the full answer
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
Posted Date:
Students also viewed these accounting questions
-
The following financial information is provided for the 2021 taxation year for Angela Fowler: Interest income. Net loss from retail store for the year ended December 31, 2021 Gain on sale of public...
-
The following financial information is provided for the 20X0 taxation year of Virginia Couture: Interest income .. $20,000 Net loss from retail store for the year ended December 31, 20X0 (7,000)...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Adam and Mandeep are in a partnership in retailing computer accessories. The partnership records, exclusive of GST, for this income year, disclose: Receipts ($): 530,000 Payments ($): 175,000 70,000...
-
Patriot Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are red, $ 20; white, $ 35; and blue, $ 65. The per unit variable costs to manufacture and sell these...
-
How ready are the following people in terms of the tasks discussed? Joe Evans stops at Mandy Simms's desk. He hands Mandy a manila envelope and says, "This is the raw data we've gathered for the...
-
Search for a California case that lists the essential elements of a cause of action for a particular contract case. If your library has Witkins Summary of the Law, a multivolume treatise that...
-
Junkyard Arts, Inc., had earnings of $316,000 for 2014. The company had 40,000 shares of common stock outstanding during the year. In addition, the company issued 15,000 shares of $50 par value...
-
A stock is currently traded at $60. The standard deviation of the stock return is 30% per annum. The riskless interest rate is 5% per annum. The terminal payoff of the derivative is specified as:...
-
An Engagement supervisor has asked the audit senior to perform the following procedures related to an engagement. For each procedure listed, identify the financial statement assertion being tested by...
-
Which of the following statements about benchmarking and best practices is true? Benchmarking involves identifying companies that are able to perform a value chain activity with Six Sigma or better...
-
Explain KuttaJoukowski rule of lift circulation.
-
Estimate the annual phantom load for an audio mini-system operated 3 h/day. Determine the annual cost of the phantom load energy if the electricity cost is 0.10/kWh.
-
Describe the basic characteristics of surface source and surface vortex?
-
Suppose the stock XYZ has been generally increasing in price over the past few months. In a time series graph of the stock price, its 20 -day moving average, and its 50-day moving average, as in...
-
Explain the steady flow around a low-speed airfoil. What is the trailing-edge condition.
-
This assignment is based on sample code from Eli Bendersky. He has a blog post that discusses it: https://eli.thegreenplace.net/2019/on-concurrency-in-go-http-servers/ and the code is found on...
-
You purchase a bond with a coupon rate of 6.7 percent, a par value $1,000, and a clean price of $905. Assume a par value of $1,000. If the next semiannual coupon payment is due in two months, what is...
-
What is a tax avoidance transaction?
-
Gold Corp., a Canadian public corporation, carries on business in Canada. For the current year, Gold Corp. has manufacturing and processing profits (M&P) of $300,000, calculated in accordance with...
-
In addition to income from employment, business, property, and capital gains, taxpayers must include income from other sources when determining their income for tax purposes. How does the Income Tax...
-
Fill in the Blank. In the finite element method, \(a(n)\) ___________ solution is assumed within each element.
-
The stiffness matrix of a bar element is given by a. \(\frac{E A}{l}\left[\begin{array}{ll}1 & 1 \\ 1 & 1\end{array} ight]\) b. \(\frac{E A}{l}\left[\begin{array}{rr}1 & -1 \\ -1 & 1\end{array}...
-
What is the basis for the derivation of transformation matrices?
Study smarter with the SolutionInn App