ing Enabled: Chapter $8-$ Assignment

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The XYZ Ltd$.$ shares were sold for cash.

$4.$ A local farmer has been trying to purchase Gege's hobby farm land. Gege purchased the land in $2016$ for $$69,000.$ In July $2023,$ Gege received $$2,600$ from the farmer, for which she granted him an option to purchase the land. The option is open for two years and allows the farmer to purchase the land for $$100,000.$

$5.$ In February $2023,$ Gege paid an investment counsellor $$600$ for investment advice. The same month, she purchased $5,000$ units of Q mutual fund for $$10$ per unit. An additional $3,000$ units were purchased in April $2023,$ at $$14$ per unit. On October $31,2023,$ Q fund distributed $$1,500$ of taxable Canadian dividends, which Gege reinvested in the fund, thereby acquiring another $100$ units. On December $3,2023,$ she sold $2,000$ units of $Q$ at $$16$ per unit. At year$-$end, the fund units were valued at $$18.$

$6.$ To obtain the money to complete the purchase of the $Q$ mutual fund units, Gege increased the mortgage on her house by $$20,000.$ She incurred interest of $$800$ on this amount before paying off the mortgage when the house was sold.

$7.$ In $2022,$ Gege invested in a real estate project with her friend, a real estate agent and part$-$time developer. Together, they purchased a parcel of land and constructed four town homes at a cost of $$665,500.$ In $2023,$ the four town homes were sold for $$772,000$ to a single buyer, who plans to use them as rental properties. Gege's share of the gain was $40\%.$ No cash was invested in the project, which had been funded entirely with bank financing.

$8.$ Gege sold shares of $x$ Ltd$.($a public corporation$)$ for $$24,000$ during the year. She acquired the shares in $2018$ for $$33,300.$

$9.$ Most of Gege's investments have been in blue$-$chip shares that pay dividends. Recently, she decided to invest and trade in speculative Canadian mining shares and commodity futures. Before she does so$,$ she wants to know the tax implications of gains and losses on such trading.

Required:

Calculate Gege's net income for tax purposes for the $2023$ taxation year in accordance with the aggregating formula of section $3$ of the Income Tax Act. Assume Other Deductions total $$5,000.$

$\backslash$table$[[$Paragraph $3($a$)$ Income,,$],[$Business Income $-$ sale of Townhouses,$ $42,600,$$$,],[$Employment Income,$ $39,900,],[$Q dividend grossed up$,$$ $2,070,],[$Interest on Mortgage,$ $(800),],[$Investment counsel fee,$ $(600),83,170],[$Paragraph $3($b$)$ Capital gains & capital losses,,$],[$Taxable capital gain on ABC Ltd$.,$$ $(21,950),,]]$

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