A Canadian private corporation incurred the following transactions in previous years: In 2004, a capital asset was sold that resulted in a capital gain of $12,000 In 2005, a capital asset was sold that resulted in a capital loss of $4,200 In 2006, a capital dividend of $1,000 was paid In 2011, life insurance proceeds of $50,000 were received; the policy had an adjusted cost base of $10,000. In the current year, a capital dividend of $15,000 was received. Determine the current balance in the capital dividend account based on the above information.
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A Canadian private corporation incurred the following transactions in previous years: In 2004, a capital asset was sold that resulted in a
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- B Inc. has net income of $60,000 for the current year, including dividends received from taxable Canadian corporations of $5,000 and taxable capital gains of $7,000. B Inc. donated $48,000 to a registered charity during the year. B Inc. has net capital losses of $10,000 incurred last year. What is B Inc.'s minimum taxable income for the current year?44. An entity has revalued its property and has recognized the increase in the revaluation reserve in its financial statements. The carrying value of the property was GHS8 million, and the revalued amount was GHS10 million. Tax base of the property was GHS6 million. In the country, the tax rate applicable to profits is 35% and the tax rate applicable to profits made on the sale of property is 30%. Where will the tax liability be recognized and at what amount? (a) In the income statement at GHS600,000. (b) In equity at GHS1.2 million. (c) In statement of recognized income and expense at GHS1.4 million. (d) In retained earnings at GHS700,000. 45. The current liabilities of an entity include fines and penalties for environmental damage. The fines and penalties are stated at GHS10 million. The fines and penalties are not deductible for tax purposes. What is the tax base of the fines and penalties? (a) GHS10 million. (b) GHS3 million. (c) GHS13 million. (d) Zero.During the current taxation year, KT Ltd., a Canadian-controlled private corporation located in Nova Scotia earned $160,000 of active business income. In addition, the company made the following capital transactions: Gain on sale of shares of a public corporation $48,000 Loss on shares of a public corporation (20,000) At the end of the previous taxation year, the following unused losses were available for carry-forward: Net capital losses $29,000 Non-capital losses 42,000 Required: For the current taxation year of KT Ltd., calculate the following: (a) Net income for income tax purposes (b) Taxable income (c) Total federal income tax.
- Nelson Ltd. has net income for tax purposes of $300,000 for the current taxation year. Included in this amount are dividends of $20,000 received from taxable Canadian corporations and taxable capital gains of $15,000. During the year, Nelson Ltd. donated $40,000 to the Canadian Cancer Society. Nelson Ltd. has non-capital losses of $10,000 (incurred last year) and net capital losses of $18,000 (incurred in 2000) available. Determine Nelson’s taxable income for the current taxation year. Income tax reference: ITA 110.1(1), 111(1)(a), (b), 112(1).For the taxation year ending December 31, 2020, Tire-Rhea Corp., a CCPC has NIFTP of $410,500. This is made up of $312,400 of active business income and $98,100 of dividends from various Canadian public companies. During 2020, the Company makes donations to Canadian registered charities totalling $31,400. At the beginning of 2020, the Company has a non-capital loss carry forward of $29,300. It intends to deduct all of this carry forward during 2020. Determine the minimum taxable income for Tire-Rhea Corp. for the year ended December 31, 2020.XYW Corp., a Domestic Corporation, registered in 2010 made available the following financial information for taxable year 2021: Balance Sheet: Asset - Php 500,000 Liability - Php 100,000 Stockholders' Equity - Php 400,000 Income Statement: Gross sales - Php 100,000,000 Cost of sales – Php 60,000,000 Operating Expenses - Php 30,000,000 How much is the excess MCIT which can be carried forward in 2022? Consider CREATE Law Choices: Php 800,000 Php 2,100,000 Php 400,000 Php 0
- Low Tech Inc. is a Canadian-controlled private corporation (CCPC) with 2020 SR&ED expenditures of $885.000. In 2019, the Company's Taxable Capital Employed In Canada was $7 million. Determine their total investment tax credit for 2020 and indicate the amount that would be refundable. OA. The total credit would be $102,750. The refundable amount would be $102,750. OB. The total credit would be S239,750. The refundable amount would be $239,750. OC. The total credit would be S239,750. The refundable amount would be $102,750. OD. The totali credit would be $102.750. The refundable amount would be $102.750.Cloud 9 Corporation, a C corporation, incurred a net capital loss of $50,000 for 2020. It also generated ordinary income of $75,000 in 2020. Cloud 9 had net capital gains of $10,000 in 2017 and $15,000 in 2018. How much of the net capital loss of $50,000 is carried forward to 2021? Answer: _____ ?Maple Enterprises Ltd., a public corporation, has always claimed maximum CCA. The following information relates to the corporation's capital transactions: 1. The undepreciated capital cost of certain CCA classes at the end of the previous taxation year was as follows. Class 1 $220,000 (one building in class) Class 8 209,000 2. In 2023, the company expanded into the manufacturing business by purchasing the following assets. Equipment (manufacturing) $33,000 11,000 Product licence for an indefinite period 3. The building was sold in 2023 for $286,000 (original cost-$253,000). 4. During 2023, the company purchased office furniture for $15,400. Required: Complete the table below using the given information. (If an item is not relevant, leave blank. Use a minus sign (-) when entering numbers that reduce UCC.) UCC, beginning of year Add Purchases Less Disposal Recapture Less CCA Ending UCC Business income: Recapture Less: CCA Net Increase (decrease) to business income Taxable Capital Gain…
- In the 2022, Crimson, Inc., a calendar C corporation, has income from operations of $180,000 and operating deductions of $120,000. In addition Crimson had: $30,000 of dividends from a 15% stock ownership in a domestic corporation. Capital losses of $20,000 and capital gains of $15,000 Cash charitable contribution to a qualitied charity of $30,000 Calculate Crimson tax liability for 2022Goose Corporation, a C corporation, incurs a net capital loss of $12,000 for 2020. It also has ordinary income of $10,000 in 2020. Goose had net capital gains of $2,500 in 2016 and $5,000 in 2019. If an amount is zero, enter "0". a. Determine the amount, if any, of the net capital loss of $12,000 that is deductible in 2020.$ b. Determine the amount, if any, of the net capital loss of $12,000 that is carried forward to 2021.$Bayelsa Corp. had the following transactions in the current year: Short term capital gain Short term capital loss Long term capital gain Long term capital loss If Bayelsa has taxable income of $70,000 before considering the capital transactions, what is Bayelsa's net capital loss that cannot be deducted in the current year? O SO $12,000 -$3,000 $5,000 -$16,000 O $19,000 net capital loss O $11,000 net capital loss O $2,000 net capital loss