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please answer in this table. thank you Ken Potman is the sole shareholder in Brickbase Enterprises Ltd, a Regina-based construction company. He is also a
please answer in this table. thank you
Ken Potman is the sole shareholder in Brickbase Enterprises Ltd, a Regina-based construction company. He is also a 35% partner in a retail kitchenware store, although he does not actively participate in its management. The following information relates to Ken's financial affairs for the year 2021 1 Brickbase was organized three years ago. For its year ending May 31, 2021, the company earned a profit of $88,000, Ken originally contributed $200,000 to the corporation, using $50,000 of his own savings and funding the balance with a bank loan. In return, the corporation issued Ken $1,000 worth of common shares and $199,000 of preferred shares. In 2021, the company paid a dividend of $ 16,000 on the preferred shares. All of Brickbase's income is subject to the small business deduction 2. During the year, Ken sold a warehouse property for $180,000 (land - $15,000, building - $165,000). Briskbase used the building to store construction equipment and the company paid Ken a fair rental for use of the property. The property was originally purchased at a cost of $175,000 (land - $ 10,000, building - $ 165,000). At the end of 2020 the building had an undepreciated capital cost of $110,000 a At the same time as the sale, Ken purchased a largelwarehouse property (constructed after March 18, 2007), which was also rented to Brickbase. The new property cost $400,000 (land - $50,000, building - $350,000). During the year, the company paid Ken net rents of $ 39,900 for both properties. The new property was financed with the proceeds from the sale of the old building as well as mortgage financing 3. The retail store partnership earned $40,000 for its year ending December 31, 2021. The profit consisted of a $32,000 profit from operations and $8,000 of interest income earned on excess undistributed cash deposits. 4. On July 1 2020 Ken purchased a four-year guaranteed investment certificate for $30,000 that bears interest at 8%. The interest compounds annually but is not payable until the end of the four-year term Ken did not include any amount of interest in his 2020 Income Durintho varone of the Canadian public corneratione of which vonica charoholder ice or him to additional charos e aconu income 4. On July 1 2020 Ken purchased a four-year guaranteed Investment certificate for $30.000 that bears interest at 8% The Interest compounds annually but is not payable until the end of the four-year term ken did not include any amount of interest in his 2020 5. During the year, one of the Canadian public corporations of which Ken is a shareholder issued him 100 additionat shares as a stock dividend. The shares hod a stated value of $ 44 per share. Ken placed the shares in his safety deposit box along with his other securities 6. Ken's other cash receipts and disbursements for 2021 are shown in the table below. Receipts: Salary from Brickbase Dividends from Canadian public corporations Dividends from foreign public corporations (net of 10% foreign withholding tax) Winnings from provincial lottery Interest on a loan to his daughter Disbursements: Contribution to Brickbase employee pension plan Investment counsel fees Legal fees for registering mortgage on new wareh warehouse Life insurance premiun on policy required as collateral for the bank loan used to purchase Brickbase shares Interest on warehouse building mortgage Interest paid on house mortgage (The house mortgage is $100,000, of which $70,000 was used to acquire the house. The balance was used to purchase public corporation shares.) Interest on bank loan (re: Brickbase shares) Donations to local charity Safety deposit box fees Required Determine separately Ken's income for tax purposes for 2021 from employment business, and property, $ 2,500 $ (4,000) Salary Registered Pension Plan (RPP) Net Employment Income Business Income Property Income $ 78,500 Net Property Income $ 0 Step by Step Solution
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