Question
Kent Kennon (55 years old) is married to Samantha (50 years old). They have two children, Cassandra (age 19) and Matteo (age 15). Susan is
Kent Kennon (55 years old) is married to Samantha (50 years old). They have two children, Cassandra (age 19) and Matteo (age 15). Susan is a full-time student and is attending Mount Saint Vincent University. David is in high school. Samantha is a lawyer, and her net income is $98,000 per year. Kent is a building contractor and is self-employed. His net business income (as a sole proprietorship) for the current year was $86,000.
In the current year, Kent received interest income of $1,800 from TD Bank (a Canadian bank), and a dividend of $1,500 (actual amount of the dividend) from Canco Ltd, a Canadian public corporation. He also received dividends from Micro Widgets Ltd (an American corporation) in the amount of $1,250 (when translated from US to Canadian dollars).
In October, Kent disposed of various shares and marketable securities, which resulted in a taxable capital gain of $8,000, and he disposed of land for a capital loss of $10,000. John also had a net business loss of $6,000. Also, Kent had a non-capital loss carry forward of $2,000 from the previous year.
REQUIRED: Calculate Kents Net Income for the Year and Taxable Income.
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