Part 1. Nashwa Enterprises Inc. operates two separate lines of business a fashion design business and an investment firm. During the year ended December 31, 2019, the company lost $3 million from the fashion design business and earned a profit of $1 million from the investment firm. The $2 million non-capital loss could not be carried back, and as a result it was carried forward. On January 1, 2020, Nashwa Enterprises Inc. is acquired by a group of individual investors (described in Part 2 below). During the 2020 year, the fashion design business lost $1.5 million while the investment firm earned $4 million.

REQUIRED Part 1: What is the minimum taxable income for 2020? Show your calculations. (8 marks) [AFTER YOU FINISH PART 1, BE SURE TO DO PART 2.]

Part 2. The purchasers of Nashwa Enterprises Inc. are Natasha Green (buying 12% of the shares), Natasha's 16-year-old son Jeremy (buying 20% of the shares), Natasha's husband Peter Green (12% of the Class A shares), and their friend Andrew Yellow, who is not related to anyone, bought 58% of the shares. Peter Green has the option to buy Andrew Yellow's shares until December 2027 for a set price a share. Natasha Green also owns 100% of the shares of Green's Boutique Ltd., a hair styling business. Peter Green also owns 100% of the shares of Peter's Salvage Ltd., a junk dealer business.

REQUIRED Part 2: After the Acquisition of Nashwa Enterprises Ltd. on January 1, 2020, will Nashwa Enterprises Inc. be associated with either Green's Boutique Ltd. or Peter's Salvage Ltd.? State the reasons for your position. (12 marks).