A Ltd and B Ltd are partners in the Triple M partnership A Ltd and B Ltd share equally in the income or loss of the partnership annually The partnership earned business income of $100,000 and $300,000, respectively, for its years ended June 30, 20X8 and June 30, 20X9 Income from the Triple M partne...

ITA 3422 961f Income included in taxation year in which the partnerships taxation year ends stu ...

A Ltd. and B Ltd. are partners in the Triple M partnership. A Ltd. and B Ltd.

Question:

A Ltd. and B Ltd. are partners in the Triple M A Ltd. and B Ltd. share equally in the income or loss of the annually. The earned business income of $100,000 and $300,000, respectively, for its years ended June 30, 20X8 and June 30, 20X9.
Income from the Triple M was A Ltd.’s only source of income for its year ended December 31, 20X8. In 20X7 A Ltd. accrued and included in income $20,000 of stub period income. Determine the amount of business income to be reported for tax purposes by A Ltd. for its year ended December 31, 20X8. Income Tax Act reference: ITA 34.2(2), 96(1)(f).
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...