Kavish loans $15,000 to his business partner on June 1st, 2020. The terms of the loan state
Question:
Kavish loans $15,000 to his business partner on June 1st, 2020. The terms of the loan state that interest of 5% compounded annually will be paid when the loan matures on May 31st, 2022. What is the amount of interest income that Kavish must report in each year from 2020 - 2022? Show your calculations.
10. Shivani is a good employee. Her employer, MNOP Company, a public corporation, rewards Shivani with stock options for 200 shares on June 2nd, 2021. The options have an exercise price of $24 and the price was $22 on the date they were granted. The company does well, and Shivani exercises the stock options on May 30, 2022, when the stock price is $28. Shivani sells the shares one year later for $39 per share. Calculate and explain the tax consequences when:
a) the options are granted (June 2, 2021),
b) the options are exercised (May 30, 2022), and
c) the shares are sold (May 30, 2023).
26. Given the following information for Sofia, calculate her net income for the year. Present your answer using the Aggregating/Statutory Formula. For Sofia
Employment Income $40,000
Rental Income (Loss) ($1,000)
Union Dues $600
Capital Gain (Loss) ($800)
RRSP Contributions $1500
Eligible Dividend Income $700
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry