Burke Enterprises Ltd. had net business income of $170,000, interest income of $28,500 and dividend income of $20,000. The corporation had an empty, unused warehouse which it rented during the current taxation year. The warehouse lease resulted in net rental losses of $32,300 during this period. As the result of dispositions of capital property, the corporation had taxable capital gains of $57,400 and allowable capital losses of $59,200. Required: (1) Determine Burke Enterprises Ltd.'s minimum Net Income For Tax Purposes for the current year and enter your answer as a whole number (no decimals, commas or dollar signs) in the box below. (2) On your exam working paper, show your calculation of net income for tax purposes for the corporation in accordance with Section 3 of the Income Tax Act. Show all of your work for full marks. (3) On your exam working paper, indicate the amount and type of any loss carry overs that are available at the end of the year. Show all of your calculations.
Burke Enterprises Ltd. had net business income of $170,000, interest income of $28,500 and dividend income of $20,000. The corporation had an empty, unused warehouse which it rented during the current taxation year. The warehouse lease resulted in net rental losses of $32,300 during this period. As the result of dispositions of capital property, the corporation had taxable capital gains of $57,400 and allowable capital losses of $59,200. Required: (1) Determine Burke Enterprises Ltd.'s minimum Net Income For Tax Purposes for the current year and enter your answer as a whole number (no decimals, commas or dollar signs) in the box below. (2) On your exam working paper, show your calculation of net income for tax purposes for the corporation in accordance with Section 3 of the Income Tax Act. Show all of your work for full marks. (3) On your exam working paper, indicate the amount and type of any loss carry overs that are available at the end of the year. Show all of your calculations.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 5BCRQ
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Transcribed Image Text:Burke Enterprises Ltd. had net business income of $170,000, interest income of $28,500 and dividend income of
$20,000. The corporation had an empty, unused warehouse which it rented during the current taxation year. The
warehouse lease resulted in net rental losses of $32,300 during this period. As the result of dispositions of capital
property, the corporation had taxable capital gains of $57,400 and allowable capital losses of $59,200.
Required:
(1) Determine Burke Enterprises Ltd.'s minimum Net Income For Tax Purposes for the current year and enter your
answer as a whole number (no decimals, commas or dollar signs) in the box below.
(2) On your exam working paper, show your calculation of net income for tax purposes for the corporation in
accordance with Section 3 of the Income Tax Act. Show all of your work for full marks.
(3) On your exam working paper, indicate the amount and type of any loss carry overs that are available at the end of
the year. Show all of your calculations.
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