1. Bonnie, a recent accounting program graduate, earned the following during 2020:

Gross income from employment $35,000

Provincial lottery winning 8,500

Capital gain on ABC shares 3,700

Loss on sale of mutual funds 8,500

Inheritance from grandmother 28,000

Interest income from inheritance 800

Subdivision e deduction( child care) 2,500

Required:

In accordance with S.3 of the Income Tax Act, compute Bonnie's net income for tax purposes for 2020.

Indicate the amount, if any, of any loss carryovers.

2. For each of the following independent cases, indicate whether the individual or corporation is a Canadian resident and how their income (both foreign and domestic) would be taxed in Canada:

Daniel Carter is a Canadian citizen living and working in New York. He visited his parents in Toronto from December 20th, 2019 to January 2nd, 2020.

On January 1st Michael Peterson was working in the Vancouver office of his company. On April 15th he was transferred to Sydney, Australia to run their Australian division. Michaels wife and children remained in Canada until July 5th so the children could finish the school year. Their house was not sold until November 22nd.

Rodan Inc. was incorporated in Washington State on June 17th, 1932. On April 20th, 1989 the head office of Rodan was moved to Kamloops, BC and remains there to this day.

Regal Ltd. was incorporated in Calgary, Alberta on September 3rd, 2005. The next day Regal began operations in Miami, Florida. Regal has never done any business in Canada.