Question

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?

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/-