Question

A Canadian resident corporation has a portfolio of investments which earned dividends from taxable Canadian public corporations of $27,500 in the current year. The corporation purchased this portfolio of investments using excess cash as well as a loan from the bank. During the current​ year, the corporation paid $15,000 of interest on the bank loan used to purchase the portfolio of investments. In​ addition, the corporation purchased a $170,000 par-value bond with a 9​% interest rate on September 1 of the current year. What is the correct amount of net property income the corporation should report on its tax return for the current year ended December​ 31?

Choose the correct answer. ​(Round your answer to the nearest whole​ dollar.)

A. $17,600

B. $16,763

C. $10,500

D. $32,600

Answer 1