Question
ASSIGNMENT DUE IN 3 HOURS PLEASE: The following data summarize the operations of Kopy Kat Inc. for its taxation year ended September 30, 2020: Loss
ASSIGNMENT DUE IN 3 HOURS PLEASE:
The following data summarize the operations of Kopy Kat Inc. for its taxation year ended September 30, 2020:
Loss from business$(95,000)
Dividend income from taxable Canadian corporations22,500
Taxable capital gains6,250
Allowable capital losses(4,375)
Donations to registered charities(3,500)
The corporation had the following carry forward balances:
Donations made in 2017 to registered charities950
Net capital losses which arose in 20156,000
Required:
Compute the corporation's taxable income for its 2020 taxation year and the balances available for carry forward to 2021 for all relevant accounts.
Show all calculations whether or not necessary to the final answer.
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