Can I get the Solution for ch.12 problem 24, in the introduction to federal taxation in Canada please.
ida Ch 12 / Study Guide _ Assignment Problems 15) Withholding tax on the non-business income was $3, 600 ( Can) . Foreign income tax in the mount of $10,000 ( Can) was paid on the foreign business income . 16 ) The land had been held for approximately five years . It was purchased with the intent of realizing a profit on sale . Additional Information ." ( *) Atlas made the following selected payments during the year . Charitable donations . ..... . . . . . . . .^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ $ 12,000 New equipment - - manufacturing ... . . .! ! ! ! ! ! ! ! ! ! ! ! ! . . . . . . . .` 5.0.0. 0.0.0 - retailing . . .^__^ .`.. .`^ ! !^ ^ ^ ^ ^ ^ ^ sales . t . 75, 0.00 ( 6) The balances in the tax accounts on January 1, 2018 were :` Unused charitable donations . .... .. . . . . . . "` 2. 0:00 Investment tax credit . ... . . . . .. . . . . .^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ Unused business foreign tax credit . . .... . ... . . . .` 3,000 Non capital losses . ............ 44, 00.0 Net capital losses ( arising in 1989 ) 15. 000 ( C ) Taxable income earned in Nova Scotia , which is the only Canadian jurisdiction in which Atlas Operates , is approximately 9:046 of the total . - REQUIRED ( a ) Calculate the taxable income and federal tax for Atlas Lied . for the year ended December 31 . 2018. ( Ignore provincial taxes and dividend refund . ) ( 0 ) Compute the refundable portion of Part I tax for 2018 .-REQUIRED Examine the information in the abo he above diagram and determine whether the corp are associated. Clearly state the reasons supporting your conclusions. Problem 24 Atlas Manufacturing Ltd. is a Canadian-controlled private corporation located in Digby, Nova Scotia, whose fiscal year end is December 31. The company's income for tax purposes for 2018 was calculated correctly as follows: $140,000 200,000 Manufacturing income - Note 1 Retailing income... ... (70,000) 40,000 Maintenance service contract loss . .-- - 30,000 Patent income - --Note 2.... ... Rental income - -Note 3. 60,000 Taxable capital gains net of losses -Note 4 .. . 10,000 Recapture of CCA -Note ... . 14,000 Interest income on outstanding account receivable on retailing income 50,000 od be Interest income from a sinking fund trust for replacement of a building 36,000 Foreign business income (gross amount - $Cdn) - Note 5 . . . - Foreign non-business income (gross amount - $Cdn) - Note 5 . . . 24,000 Dividends from taxable Canadian Corporations - non-connected 12,000 SR Profit on sale of excess land - Note 6... .. 100,000 Net income for tax purposes - Division B $646,000 about 10 1000 NOTES: (1) Manufacturing income was correctly computed according to the provisions of reg. 5200. (2) The patent income has been determined to be property income. (3) The rental income was derived from leasing the entire space on a five-year lease in an unused warehouse in a small town in the western part of the province. (4) The net taxable capital gain and the recapture concerned the disposition of certain specialized maintenance service equipment. 112,875
