The following information on Dunway Ltd., a Canadian public company, applies to its 2021 taxation year ending June 30, 2021:

 Business Revenues $825,000 

Business Expenses 533,000 

Canadian Dividends from Controlled Subsidiary 17,500 

Canadian Dividends from Non-Controlled Public Companies 15,000 

Capital Gain on Investment Sale 22,000 

Dividends Paid 182,000 

Donation to Canadian Government 26,000 

Donations to Registered Canadian Charities 141,000 

The Company has a 2018 net capital loss balance of $18,000 and a 2018 non-capital balance of $137,000. 

Dunway Ltd. does not anticipate any capital gains in the foreseeable future. The accounting business income is equal to the business income for income tax purposes therefore there are no reconciliation adjustments required. 

Required: 

Calculate the minimum net and taxable income for the 2021 taxation year. 

Indicate the amount and type of any carryovers that will be available to apply to other taxation years. 

Explain all the steps 

Answer rating: 100% (QA)

Gross business income Business Reviews Business Expenses Gross Business Income8250005... View the full answer