During the current taxation year, KT Ltd., a Canadian-controlled private corporation located in Nova Scotia earned $176,000 of active business income. In addition, the company made the following capital transactions:

Gain on sale of shares of a public corporation	$	52,000
Loss on shares of a public corporation		(22,000)

At the end of the previous taxation year, the following unused losses were available for carry-forward:

Net capital losses	$	(30,000)
Non-capital losses		(52,000)

Required: For the current taxation year of KT Ltd., calculate

(1) net income for tax purposes;

(2) taxable income; and

(3) total federal income tax.

1 olo 2 Answer is complete but not entirely correct. Business income S 178.000 Taxable capital gain S 28.000 Allowable capital loss $ (11,000) Net income for tax purposes $ 191.000 Non Capital Loss Carry Forward $ 0X Net capital loss carry forward S (15,000) Taxable income $ (15,000) Federal tax: Basic Federal Tax 66.880 x Abatement $ (17,600) X Refundable Tax on CCPC Investment 0 Income Small Business Deduction S 29.920 x Total Federal Income Tax S 19.380 X 69 69 3 s