A Ltd. and B Ltd. are partners in the Triple M partnership. A Ltd. and B Ltd. share equally in the income or loss of the partnership annually. The partnership earned business income of $100,000 and $300,000, respectively, for its years ended June 30, 20X8 and June 30, 20X9.
Income from the Triple M partnership was A Ltd.’s only source of income for its year ended December 31, 20X8. In 20X7 A Ltd. accrued and included in income $20,000 of stub period partnership income. Determine the amount of business income to be reported for tax purposes by A Ltd. for its year ended December 31, 20X8. Income Tax Act reference: ITA 34.2(2), 96(1)(f).