At the beginning of 2022, the owners did not see any real hope for improved results under their own management and they began looking for new investors with more experience in the bakery industry. Their efforts met with success when, on April 1, 2022, Deerfield Ltd. acquired 71% of the outstanding shares of Turner Inc. Deerfield is a large Canadian public company with a December 31 taxation year end and many years of successful operation in the industry. It is the intent of the new owner to inject additional capital and management expertise with a view to making Turner's operations profitable within two years. As this AOC will result in a deemed taxation year end, Turner prepared an Income Statement for the period January 1, 2022, to March 31,2022 . This three-month Income Statement showed an additional business loss of $22,600 for the period, but no further capital losses. 2022 Income (Loss) Shortly after taking over Turner Inc., Deerfield Ltd. decided that some Property values of the extra space in Turner's facilities could be used for manufacturing illuminated glass figurines. Turner's income (loss) from the two separate businesses for the period April 1, 2022, through December 31,2022 , was as follows. On March 31, 2022, the values of the company's property were as follows. 23. 2023 Income (Loss) For 2023, the income (loss) figures for the two separate businesses were as follows. Requirement A. If Turner Inc. makes all possible elections to minimize the net capital and non-capital loss balances, determine the amount of the non-capital loss balance that will be carried forward, subject to restriction, after the acquisition of control by Deerfield Ltd., and the amount of any net capital loss balance that will be tainted. Find the non-capital loss balance that will be carried forward. Non-capital loss balance that will be carried forward: Find the net capital loss that cannot be claimed. Net capital loss that cannot be claimed: Requirement B. Indicate the maximum amount of the non-capital losses that can be used during the taxation year April 1 through December 31,2022. What is the maximum non-capital loss balance that will be carried forward? Requirement C. Indicate the maximum amount of non-capital losses that can be claimed in 2023. What is the maximum amount of non-capital losses that can be claimed? At the beginning of 2022, the owners did not see any real hope for improved results under their own management and they began looking for new investors with more experience in the bakery industry. Their efforts met with success when, on April 1, 2022, Deerfield Ltd. acquired 71% of the outstanding shares of Turner Inc. Deerfield is a large Canadian public company with a December 31 taxation year end and many years of successful operation in the industry. It is the intent of the new owner to inject additional capital and management expertise with a view to making Turner's operations profitable within two years. As this AOC will result in a deemed taxation year end, Turner prepared an Income Statement for the period January 1, 2022, to March 31,2022 . This three-month Income Statement showed an additional business loss of $22,600 for the period, but no further capital losses. 2022 Income (Loss) Shortly after taking over Turner Inc., Deerfield Ltd. decided that some Property values of the extra space in Turner's facilities could be used for manufacturing illuminated glass figurines. Turner's income (loss) from the two separate businesses for the period April 1, 2022, through December 31,2022 , was as follows. On March 31, 2022, the values of the company's property were as follows. 23. 2023 Income (Loss) For 2023, the income (loss) figures for the two separate businesses were as follows. Requirement A. If Turner Inc. makes all possible elections to minimize the net capital and non-capital loss balances, determine the amount of the non-capital loss balance that will be carried forward, subject to restriction, after the acquisition of control by Deerfield Ltd., and the amount of any net capital loss balance that will be tainted. Find the non-capital loss balance that will be carried forward. Non-capital loss balance that will be carried forward: Find the net capital loss that cannot be claimed. Net capital loss that cannot be claimed: Requirement B. Indicate the maximum amount of the non-capital losses that can be used during the taxation year April 1 through December 31,2022. What is the maximum non-capital loss balance that will be carried forward? Requirement C. Indicate the maximum amount of non-capital losses that can be claimed in 2023. What is the maximum amount of non-capital losses that can be claimed
