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. . Carl Kay is the vice-president of KM Ltd., a Canadian-controlled private corporation located in Halifax, Nova Scotia. KM operates a real estate development

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. . Carl Kay is the vice-president of KM Ltd., a Canadian-controlled private corporation located in Halifax, Nova Scotia. KM operates a real estate development business constructing and selling commercial buildings and residential apartments. Carl's 2020 financial transactions include the following: Carl received a salary of $104,500 from KM. From this amount, KM deducted El and CPP of $3,754 (includes CPP enhanced contributions of $166) and income tax of $19,000. The company provided him with a car that cost $35,000 and that has an undepreciated capital cost of $18,000. The operating costs of $3,000 were paid by KM. In 2020. Carl drove the car 20,000 kilometref, of which 9,000 kilometres was for employment purposes. KM contributed $4,000 on Carl's behalf to a deferred profit sharing plan, Although KM does not have a group life Insurance plan, it paid Carl's personal life Insurance premium of $1,100 (coverage - $75,000). During the year, Carl sold 1100 shares of KM Ltd. for $10 per share. He had acquired the shares three years earlier for $6 per share as part of a company stock option plan. At the time of purchase, the shares were valued at $7 per share. In 2020, Carl constructed a 10-sulte apartment block. He sold the property in 2020 for $800,000, which was $200,000 more than the original land and building cost. He received $80,000 of the proceeds in cash, with the balance due in five annual instalments beginning in 2021. The property incurred a net rental loss of $7700 (before amortization). Carl sold his summer cottage for $99,000 after it was announced that a waste disposal site would be developed in the area. He had purchased the cottage six years earlier for $120,000 in 2017. Carl loaned $18,000 to Alloy Ltd., a Canadian-controlled private corporation. All of the company's assets are used in an active business. The 2019 Interest of $1.500, which Carl Included in income, has not been received. The company is in severe financial difficulty and may not survive beyond next year. Carl sold shares of a public corporation, purchased in 2019 for $13,200, for $22.000 In November. Cart received a legal bill for $2,200 relating to a dispute over a tax reassessment. Cart paid $1,300 in December 2020 and the balance in January 2021 Carl received Eligible dividends of $2,200 and Non-eligible dividends of $1,100 from Canadian corporations and $1,800 from a foreign corporation. The foreign corporation remitted a 10% withholding tax to its government. Carl celebrated his 65th birthday in December 2020. He supports his spouse, who is retired. His spouse had interest income of $3,000 in 2020. During the year, Carl made gifts of $4,000 to a local charity. He paid tuition fees of $800 to attend a 3-month evening course at a university . . Carl has used his entire capital gain deduction. At the end of 2020, he had unused net capital losses of $12,000 and non-capital losses of $7,000 Required: Calculate Carl's minimum 2020 net income for tax purposes, taxable income, and federal income tax Segment A Employment Income: Net Employment Income Business Income: Net Business Income Property Income: Net Property Income Segment Taxable capital gains and Allowable capital losses Segment Sub Total allowed Segment C Segment B Sub Total allowed Segment Segment D Net Income for Tax purposes Taxable income Taxable income from above Federal income tax Deduct non-refundable credits: Subtotal 15% Basic Federal Tax Federal tax payable . . Carl Kay is the vice-president of KM Ltd., a Canadian-controlled private corporation located in Halifax, Nova Scotia. KM operates a real estate development business constructing and selling commercial buildings and residential apartments. Carl's 2020 financial transactions include the following: Carl received a salary of $104,500 from KM. From this amount, KM deducted El and CPP of $3,754 (includes CPP enhanced contributions of $166) and income tax of $19,000. The company provided him with a car that cost $35,000 and that has an undepreciated capital cost of $18,000. The operating costs of $3,000 were paid by KM. In 2020. Carl drove the car 20,000 kilometref, of which 9,000 kilometres was for employment purposes. KM contributed $4,000 on Carl's behalf to a deferred profit sharing plan, Although KM does not have a group life Insurance plan, it paid Carl's personal life Insurance premium of $1,100 (coverage - $75,000). During the year, Carl sold 1100 shares of KM Ltd. for $10 per share. He had acquired the shares three years earlier for $6 per share as part of a company stock option plan. At the time of purchase, the shares were valued at $7 per share. In 2020, Carl constructed a 10-sulte apartment block. He sold the property in 2020 for $800,000, which was $200,000 more than the original land and building cost. He received $80,000 of the proceeds in cash, with the balance due in five annual instalments beginning in 2021. The property incurred a net rental loss of $7700 (before amortization). Carl sold his summer cottage for $99,000 after it was announced that a waste disposal site would be developed in the area. He had purchased the cottage six years earlier for $120,000 in 2017. Carl loaned $18,000 to Alloy Ltd., a Canadian-controlled private corporation. All of the company's assets are used in an active business. The 2019 Interest of $1.500, which Carl Included in income, has not been received. The company is in severe financial difficulty and may not survive beyond next year. Carl sold shares of a public corporation, purchased in 2019 for $13,200, for $22.000 In November. Cart received a legal bill for $2,200 relating to a dispute over a tax reassessment. Cart paid $1,300 in December 2020 and the balance in January 2021 Carl received Eligible dividends of $2,200 and Non-eligible dividends of $1,100 from Canadian corporations and $1,800 from a foreign corporation. The foreign corporation remitted a 10% withholding tax to its government. Carl celebrated his 65th birthday in December 2020. He supports his spouse, who is retired. His spouse had interest income of $3,000 in 2020. During the year, Carl made gifts of $4,000 to a local charity. He paid tuition fees of $800 to attend a 3-month evening course at a university . . Carl has used his entire capital gain deduction. At the end of 2020, he had unused net capital losses of $12,000 and non-capital losses of $7,000 Required: Calculate Carl's minimum 2020 net income for tax purposes, taxable income, and federal income tax Segment A Employment Income: Net Employment Income Business Income: Net Business Income Property Income: Net Property Income Segment Taxable capital gains and Allowable capital losses Segment Sub Total allowed Segment C Segment B Sub Total allowed Segment Segment D Net Income for Tax purposes Taxable income Taxable income from above Federal income tax Deduct non-refundable credits: Subtotal 15% Basic Federal Tax Federal tax payable

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