As ITA 3(b) indicates Taxable Capital Gains exceed Allowable Capital Losses, which of the following statements is correct in the calculation of Net Income for tax purposes in a year? The net amount reported under 3(b) cannot be a negative amount The net amount reported under 3(b) cannot be a positive amount The net amount reported under 3(b) cannot be zero The net amount reported under 3(b) does not apply in the computation of net income for a year

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 46P
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As ITA 3(b) indicates Taxable Capital
Gains exceed Allowable Capital Losses,
which of the following statements is
correct in the calculation of Net
Income for tax purposes in a year?
The net
amount
reported
under 3(b)
cannot be a
negative
amount
The net amount
reported under
3(b) cannot be a
positive amount
The net amount
reported under
3(b) cannot be
zero
The net amount
reported under
3(b) does not
apply in the
computation of
net income for a
year
Transcribed Image Text:As ITA 3(b) indicates Taxable Capital Gains exceed Allowable Capital Losses, which of the following statements is correct in the calculation of Net Income for tax purposes in a year? The net amount reported under 3(b) cannot be a negative amount The net amount reported under 3(b) cannot be a positive amount The net amount reported under 3(b) cannot be zero The net amount reported under 3(b) does not apply in the computation of net income for a year
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