Question

Personal and corporate taxation

During the​ year, Ben earned employment income of​ $160,000. His employer withheld maximum in CPP and in EI premiums. Ben received​ $13,800 in interest on Snap Inc. bond​ (property income). As in prior​ years, he donated​ $1,000 to a Canadian charity. He has​ $20,000 non-capital loss carried over from the prior year.

Determine​ Ben's minimum taxable income for the current year.

A.$152,800

B.​$150,192

C.$153,800

D.​$173,800

please show your working, thank you.

Answer 1

NOTE :-

IT IS BEING ASSUMED THAT THE DONATION MADE TO CANADIAN CHARITY IS ALLOWABLE AS DEDUCTION FROM TAXABLE INCOME, OTHERWISE THE NET TAXABLE INCOME WOULD BE INCREASED BY $1,000 AND IT WOULD BE %1,53,800.

IT IS BEING ASSUMED THAT THE RETURN OF INCOME WOULD BE FILLED WITHIN THE TIME PERIOD OF DUE DATES SO THE CARRIED FORWARD NON CAPITAL LOSS WOULD BE ALLOWED TO BEN FOR CURRENT YEAR. AN OTHER ASSUMPTION CAN BE MADE AND THE RESULT SHOULD BE ADJUSTED ACCORDING TO THAT.