Problem 1: Chapter 1 Instructions: During the 2020 year, Ricky has net employment income of $52000 and interest income of $6000. Capital gains for the year total $38400, while capital losses are realized in the amount of $8626. He has deductible child care costs of $1200 and he is able to make a $5000 deductible RRSP contribution. He also has a business loss of $173000 Required: Calculate Ricky's 2020 Net Income for Tax Purposes (Division B income). Indicate the amount and type of any loss carry overs that would be available at the end of the year. Respond on the "P1- Response" tab in the yellow boxes. Problem 1: Chapter 1: Net Income For Tax Purposes Fill the appropriate numbers in each of the yellow boxes in order to solve problem 1. Losses and deductions should be indicated with a negative number. Enter zero if nothing applies to that line item. Grey boxes are formulized and do not need to be changed. Rough Work (If Any-nc Income Under ITA 3(a) Employment Income Business Income (if loss see ITA 3(d)) Property Income-interest, dividends,rental Other Income 0 (cannot be negative) Income Under ITA 3(b) Taxable capital gains Allowable capital losses (negative) 0 (cannot be negative) Balance from ITA 3(a) and (b) Subdivision e deductions (total) (negative) 0 Balance under ITA 3(c) Deductions under ITA 3(d) Business Loss (negative) Rental loss (negative) 0 Net income for Tax Purposes (NITP - Div B Income) Non capital loss 100 Net capital loss Problem 1: Chapter 1 Instructions: During the 2020 year, Ricky has net employment income of $52000 and interest income of $6000. Capital gains for the year total $38400, while capital losses are realized in the amount of $8626. He has deductible child care costs of $1200 and he is able to make a $5000 deductible RRSP contribution. He also has a business loss of $173000 Required: Calculate Ricky's 2020 Net Income for Tax Purposes (Division B income). Indicate the amount and type of any loss carry overs that would be available at the end of the year. Respond on the "P1- Response" tab in the yellow boxes. Problem 1: Chapter 1: Net Income For Tax Purposes Fill the appropriate numbers in each of the yellow boxes in order to solve problem 1. Losses and deductions should be indicated with a negative number. Enter zero if nothing applies to that line item. Grey boxes are formulized and do not need to be changed. Rough Work (If Any-nc Income Under ITA 3(a) Employment Income Business Income (if loss see ITA 3(d)) Property Income-interest, dividends,rental Other Income 0 (cannot be negative) Income Under ITA 3(b) Taxable capital gains Allowable capital losses (negative) 0 (cannot be negative) Balance from ITA 3(a) and (b) Subdivision e deductions (total) (negative) 0 Balance under ITA 3(c) Deductions under ITA 3(d) Business Loss (negative) Rental loss (negative) 0 Net income for Tax Purposes (NITP - Div B Income) Non capital loss 100 Net capital loss