During the 2020 taxation year, Durham Inc. had ASPE based accounting income before taxes of $427,000...

 

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During the 2020 taxation year, Durham Inc. had ASPE based accounting income before taxes of $427,000 and an accounting loss of $625,000 for the 2021 taxation year. Included in these figures were the following amounts: 2020 2021 Canadian Dividends Received $41,000 Donations to Registered Charities $12,100 Gains (Losses) on the sale of shares $65,000 (31,000) The above accounting gains (losses) on the sale of shares are equal to the capital gains (losses) on the sale of the shares. $58,000 17,600 Durham had a 2017 non-capital loss balance of $26,000 and a 2017 net capital loss balance of $19,000. It is the policy of Durham to maximize use of any non- capital losses first before utilizing any net capital losses. Required: Calculate the minimum net and taxable income for each of the 2020 and 2021 taxation years and indicate the amount and type of any carry overs. You do not have to have to analyze or discuss how to carryback losses incurred in 2021, however, you do have to list the type and amount of losses and carry overs incurred in 2021. During the 2020 taxation year, Durham Inc. had ASPE based accounting income before taxes of $427,000 and an accounting loss of $625,000 for the 2021 taxation year. Included in these figures were the following amounts: 2020 2021 Canadian Dividends Received $41,000 Donations to Registered Charities $12,100 Gains (Losses) on the sale of shares $65,000 (31,000) The above accounting gains (losses) on the sale of shares are equal to the capital gains (losses) on the sale of the shares. $58,000 17,600 Durham had a 2017 non-capital loss balance of $26,000 and a 2017 net capital loss balance of $19,000. It is the policy of Durham to maximize use of any non- capital losses first before utilizing any net capital losses. Required: Calculate the minimum net and taxable income for each of the 2020 and 2021 taxation years and indicate the amount and type of any carry overs. You do not have to have to analyze or discuss how to carryback losses incurred in 2021, however, you do have to list the type and amount of losses and carry overs incurred in 2021.

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2020 Net Income 427000 Taxable Incom... View the full answer