During the current taxation year, K2 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)
Gain from settling a long-term debt of $300,000 for a reduced
amount of $240,000………………..………………..	60,000

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 K2 Ltd., calculate

(a) Net income for income tax purposes;

(b) Taxable income; and

(c) Total federal income tax.