The operations of Balloons Ltd. generated the following data for its current December 31 taxation year:

Business losses	(150,000)
Dividends received and deducted (Division C)	25,000
Bond interest	12,500
Allowable business investment loss	(7,500)
Taxable capital gains	37,500
Allowable capital losses	(17,500)
	(100,000)

In the prior taxation year (last year), its first profitable year in several, Balloons Ltd. had taxable income of $100,000.

REQUIRED: 

Compute the non-capital loss for Balloons Ltd. in the current year and determine the amount of that loss that can be carried back to the prior year.

Answer rating: 100% (QA)

The noncapital loss for Balloons Ltd in the current year is 232500 This loss can be carr... View the full answer