The following financial information is provided for the 2021 taxation year for Angela Fowler: Interest income...

 

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The following financial information is provided for the 2021 taxation year for Angela Fowler: Interest income Net loss from retail store for the year ended December 31, 2021 Gain on sale of public corporation shares Loss on sale of shares of a CCPC qualified as a small business corporation Dividends from foreign corporations, net of $300 withholding tax Loss on sale of land that was originally purchased to build a rental property. The project was cancelled after a rezoning application was lost. Gain on sale of an oil painting Director's fees for attendance at corporate meetings Loss on sale of personal jewellery CPP enhanced contributions $ 20,000 (7,000) 8,000 (10,000) 2,700 (38,000) 4,000 6,000 5,000 133 In 2021, Angela gifted shares of a Canadian-controlled public corporation (CCPC) to her 16-year-old son. The shares, which originally cost $8,000, had a value of $10,000 at the time of the gift. Also in 2021, Angela had a rental loss of $3,000 (before amortization/depreciation and capital cost allowance). The property was originally purchased for $70,000 (land - $9,000, building - $61,000). The class 1 building had an unamortized capital cost of $50,000 at the end of the previous year. On the last day of 2021, Angela sold the property for $100,000 (land - $12,000, building - $88,000). In the previous year, by agreement, Angela obtained the exclusive licence to distribute a certain product in Canada. In 2021, she divided the country into six sales territories and sold 10-year sub-licences to individuals in each territory. Total proceeds were $24,000. Required: 1. Calculate Angela's net income for tax purposes for the 2021 taxation year in accordance with the aggregating formula of section 3 of the Income Tax Act. The following financial information is provided for the 2021 taxation year for Angela Fowler: Interest income Net loss from retail store for the year ended December 31, 2021 Gain on sale of public corporation shares Loss on sale of shares of a CCPC qualified as a small business corporation Dividends from foreign corporations, net of $300 withholding tax Loss on sale of land that was originally purchased to build a rental property. The project was cancelled after a rezoning application was lost. Gain on sale of an oil painting Director's fees for attendance at corporate meetings Loss on sale of personal jewellery CPP enhanced contributions $ 20,000 (7,000) 8,000 (10,000) 2,700 (38,000) 4,000 6,000 5,000 133 In 2021, Angela gifted shares of a Canadian-controlled public corporation (CCPC) to her 16-year-old son. The shares, which originally cost $8,000, had a value of $10,000 at the time of the gift. Also in 2021, Angela had a rental loss of $3,000 (before amortization/depreciation and capital cost allowance). The property was originally purchased for $70,000 (land - $9,000, building - $61,000). The class 1 building had an unamortized capital cost of $50,000 at the end of the previous year. On the last day of 2021, Angela sold the property for $100,000 (land - $12,000, building - $88,000). In the previous year, by agreement, Angela obtained the exclusive licence to distribute a certain product in Canada. In 2021, she divided the country into six sales territories and sold 10-year sub-licences to individuals in each territory. Total proceeds were $24,000. Required: 1. Calculate Angela's net income for tax purposes for the 2021 taxation year in accordance with the aggregating formula of section 3 of the Income Tax Act.

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Angelas net income for tax purposes for the 2021 taxation year can be calcula... View the full answer