Question: Ferrara Ltd. commenced operations in 20x1, and has two separate lines of business. They are a mail order operation selling organic food products, and an

Ferrara Ltd. commenced operations in 20x1, and has two separate lines of business. They are a mail order operation selling organic food products, and an operation that provides website services to small businesses. The income (loss) of the two operations for the years 20x1 and 20x2 is as follows: Year Mail Order Operation Website Operation 20x1 ($ 145031) $ 42079 20x2 $ 55581 $ 85412 The company has no deduction from Net Income for Tax Purposes other than the possible loss carry forwards from 20x1. Determine the amount of Taxable Income in 20x2 assuming that there was no acquisition of control on January 1, 20x2. Answer:Question 5 38041

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