Question

During the current taxation​ year, Ernie Fisher earned the following sources of​ income: Net Employment Income...

During the current taxation​ year, Ernie Fisher earned the following sources of​ income:
Net Employment Income $42,600
Net Business Income 11,750
Taxable Capital Gains 9,600 
 
Ernie also has the following loss carry forward balances available at the beginning of the current taxation​ year:
​
Non-capital Losses $15,420
Net Capital Losses [(1/2)($21,000)]: $10,500 
 
Which of the following correctly lists​ Ernie's net income for tax purposes and minimum taxable income for the current taxation​ year?
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Answer #1

NET INCOME FOR TAX PURPOSES IS...

NET EMPLOYMENT INCOME $42600/-

NET BUSINESS INCOME $11750/-

TAXABLE CAPITAL GAINS $9600/-

TOTAL INCOME FOR TAX PURPOSES IS $63950/-

MINIMUN TAXABLE INCOME FOR CURRENT TAXATION YEAR IS...

A. INCOME WHICH ARE NON CAPITAL INCOME

NET EMPLOYMENT INCOME $42600/-

NET BUSINESS INCOME $11750/-

TOTAL $54350/-

LESS :- LOSSES AT THE BEGNING OF YEAR WHICH ARE

NON CAPITAL LOSSES - SETS OFF $15420/-

TAXABLE INCOME $38930/-

B. INCOME WHICH ARE CAPITAL INCOME

TAXBALE CAPITAL GAINS $9600/-

LESS :- LOSSES AT THE BEGNING OF YEAR WHICH ARE

CAPITAL LOSSES - SETS OFF $10500/-

TAXABLE CAPITAL INCOME $00/-

TOTAL MINIMUM TAXABLE INCOME A+B $38930/-

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