Question: Question 3: 6 Marks Blake, a recent accounting program graduate, earned the following during the year: Gross income from employment $ 7,000 Provincial lottery winnings2,500

Question 3: 6 Marks

Blake, a recent accounting program graduate, earned the following during the year:

Gross income from employment $ 7,000

Provincial lottery winnings2,500

Capital gain on ABC shares1,200

Inheritance from grandmother 12,000

Interest income from inheritance800

Blake has asked you to:

(a)Calculate his net income for tax purposes for the year. (3 Marks)

(b)Calculate his taxable income for the year. Assume that Blake has a non-capital loss carry forward from last year of $3,000. (3 Marks)

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