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Dr. Jordan Davis has hired your professional services to file her income tax return. Dr. Davis is a retired surgeon. Due to her failing eyesight, Jordan was required to retire from her occupation at a younger age than normal. Fortunately, Jordan has more than enough income to support herself as a result of years of receiving a very large salary as a surgeon and a family inheritance. Jordan has invested most of her past employment earnings into a larg portfolio which paid the following amounts during 2020, the current year. (Click on the icon to view Part 1 of the additional information.) (Click on the icon to view Part 2 of the additional information.) Required Requirement 1. Compute Dr. Davis's net property income for 2020. Fill in the table below to compute the net property income. (Round amounts to the nearest cent. Enter deductions with parentheses or a minus sign.) Property Income Eligible dividends Ineligible dividends Interest income 23450 Foreign dividends 13800 Net rental income Carrying Charges Net property income Additional info (part 1) Item Amount Dividends from public Canadian corporations (subject to high corporate tax rates): $24,500 Dividends from private Canadian corporations (subject to low corporate tax rates): 33,000 Interest income received from Canadian sources: 18,500 Dividends from foreign corporations (translated into Canadian dollars): 12,300 Note: Total foreign dividends earned was $13,800 less foreign tax withheld of $1,500. Jordan's portfolio of investments includes a five-year investment contract purchased three years ago on September 1. The investment contract has a maturity value of $165,000 and an annual interest rate of 3%. The total interest earned on the investment contract will be paid on maturity on September 1, 2022, two years from now. Jordan did not receive any interest (cash) from this investment contract in 2020. Jordan's portfolio of investments is managed by a large Canadian brokerage firm called Premier Investments Inc. ("Premier") Premier charges Jordan investment counsel fees of $5,400 during 2020. Print Done Dr. Jordan Davis has hired your professional services to file her income tax return. Dr. Davis is a retired surgeon. Due to her failing eyesight, Jordan was required to retire from her occupation at a younger age than normal. Fortunately, Jordan has more than enough income to support herself as a result of years of receiving a very large salary as a surgeon and a family inheritance. Jordan has invested most of her past employment earnings into a larg portfolio which paid the following amounts during 2020, the current year. (Click on the icon to view Part 1 of the additional information.) (Click on the icon to view Part 2 of the additional information.) Required Requirement 1. Compute Dr. Davis's net property income for 2020. Fill in the table below to compute the net property income. (Round amounts to the nearest cent. Enter deductions with parentheses or a minus sign.) Property Income Eligible dividends Ineligible dividends Interest income 23450 Foreign dividends 13800 Net rental income Carrying Charges Net property income Additional info (part 1) Item Amount Dividends from public Canadian corporations (subject to high corporate tax rates): $24,500 Dividends from private Canadian corporations (subject to low corporate tax rates): 33,000 Interest income received from Canadian sources: 18,500 Dividends from foreign corporations (translated into Canadian dollars): 12,300 Note: Total foreign dividends earned was $13,800 less foreign tax withheld of $1,500. Jordan's portfolio of investments includes a five-year investment contract purchased three years ago on September 1. The investment contract has a maturity value of $165,000 and an annual interest rate of 3%. The total interest earned on the investment contract will be paid on maturity on September 1, 2022, two years from now. Jordan did not receive any interest (cash) from this investment contract in 2020. Jordan's portfolio of investments is managed by a large Canadian brokerage firm called Premier Investments Inc. ("Premier") Premier charges Jordan investment counsel fees of $5,400 during 2020. Print Done
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When you retire as a member of a pension fund pension preservation fund or retirement annuity fund and you wish to take a portion of your retirement interest as a lump sum you are allowed to take comm... View the full answer
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
Posted Date:
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