Please, I need help to know if what I have already done is right and how to finish the exercise.

. . Carl Kay is the vice-president of KM Ltd., Canadian-controlled private corporation located in Halifax, Nova Scotia. KM operates a real estate development business constructing and selling commercial buildings and residential spartments. Carl's 2020 financial transactions include the following: Carl received a salary of $95.000 from KM. From this amount, KM deducted Elend 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 $40,000 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 kilometres, of which 8,000 kilometres was for employment purposes. KM contributed $4,000 on Carl's behalf to deferred profit sharing plan. Although KM does not have a group life insurance pion, it paid Cori's personal life insurance premium of $1000 (coverage - $75,000). During the year. Carl sold 1,000 shares of KM Ltd. for $10 per shere. He had acquired the shores three years earlier for $6 per share as part of a compony stock-option plan. At the time of purchase, the shares were valued at $7 per shore. In 2020. Cari constructed a 10-suite apartment block. He sold the property in 2020 for $800.000, which was $150.000 more then the original iend and building cost. He received $30,000 of the proceeds in cash with the balance due in five annual instsiments beginning in 2021. The property incurred a net rental loss of $7.000 (before amortization Carl sold his summer cottage for $90,000 sfter it was announced that waste disposal site would be developed in the sres. He had purchased the cottage six years earlier for $120,000. In 2017. Carllosned $16.000 to Alloy Ltd., Canadian-controlled private corporation. All of the company's assets are used in an active business. The 2019 interest of $1.400, which Cari 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 $12,000 for $20.000. In November. Cari received a legal bil for $2,000 relating to a dispute over a tax resssessment Carl paid $1.200 in December 2020 and the balance in January 2021. Carl received Eligible dividends of $2,000 and Non-eligible dividends of $1.000 from Canadian corporations and $1.800 from a foreign corporation. The foreign corporation remitted a 10% withholding tax to its government. Cari celebrated his 65th birthday in December 2020. He supports his spouse, who is retired. His spouse hoc interest income of $4.000 in 2020. During the year, Carl made gifts of $3,000 to a local charity. He paid tuition fees of $900 to attend a 3-month evening course eta university . . . . . Corl has used his entire capital gain deduction. At the end of 2020, he had unused net capital losses of $12000 and non-capital losses of $7.000. Required: Calculate Carl's minimum 2020 net income for tax purposes, taxable income, and federal income tax. The question is detailing the taxpayer's 2020 income, so you will need to use 2020 federal tax rates to calculate his federal tax owing. The apartment sale will be treated as business income because Carl is in the real estate business development business and it appears that the property was constructed for the purpose of resale. The loss on the loan to Alloy Ltd. can be claimed in 2020. Carl has previously claimed all of his Lifetime Capital Gains Exemption so you will need to assess whether Carl can claim an ABIL. Make sure you take any threshold limitations into account when calculating tax credits. The education and textbook credits were eliminated in 2017 but there is still a tuition credit available. The foreign dividend tax credit is $200 (use this amount in your calculations). s 95,000 10,000 1.000 1,000 S $ 107.000 S 150.000 (135,000 * $ 15,000 Segment A Employment income: Salary Car Standby charge Car Operating benefit Life insurance benefit Stock option Benefit Net Employment Income Business income: Gain on Apartment sale Less reserve on sale of apt Net Business Income Property income: Canadian dividends Eligible Canadian dividends Non-e gible Foreign dividend Bad debt - Alloy interest Net Property Income Segment B Taxable capital gains and Allowable capital losses Taxable capital gains: KM shares Taxable capital gains: Public corporation Bad debt - Alloy Ltd Loan Segment B Sub Total allowed Segment C CPP enhanced contributions Legal bill (tax reassessment) Segment Rental loss Net Income for Tax purposes Stock option deduction Non Capital Loss Carry Forward Taxable income $ $ $ 2.760 1,150 2,000 (1.400) $ 4.510 5 S S 1,500 4.000 (8,000 $ $ $ $ $ 0 (188) (2.000) (7.000) 114.844 (500) (7.000) 107,344 $ wa S S 107 344 19,902 $ $ $ $ Taxable income from above Federal income tax Deduct non-refundable credits: Basic tax credit Spousal tax credit Age tax credit CPP El tax credit Employment tax credit Tuition tax credit Subtotal 15% Donations tax credit Eligible dividends tax credit non-eligible dividends tax credit Basic Federal Tax Foreign dividend tax credit Federal tax payable 0 3.588 1.245 900 5.733 $ S 2001 . . Carl Kay is the vice-president of KM Ltd., Canadian-controlled private corporation located in Halifax, Nova Scotia. KM operates a real estate development business constructing and selling commercial buildings and residential spartments. Carl's 2020 financial transactions include the following: Carl received a salary of $95.000 from KM. From this amount, KM deducted Elend 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 $40,000 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 kilometres, of which 8,000 kilometres was for employment purposes. KM contributed $4,000 on Carl's behalf to deferred profit sharing plan. Although KM does not have a group life insurance pion, it paid Cori's personal life insurance premium of $1000 (coverage - $75,000). During the year. Carl sold 1,000 shares of KM Ltd. for $10 per shere. He had acquired the shores three years earlier for $6 per share as part of a compony stock-option plan. At the time of purchase, the shares were valued at $7 per shore. In 2020. Cari constructed a 10-suite apartment block. He sold the property in 2020 for $800.000, which was $150.000 more then the original iend and building cost. He received $30,000 of the proceeds in cash with the balance due in five annual instsiments beginning in 2021. The property incurred a net rental loss of $7.000 (before amortization Carl sold his summer cottage for $90,000 sfter it was announced that waste disposal site would be developed in the sres. He had purchased the cottage six years earlier for $120,000. In 2017. Carllosned $16.000 to Alloy Ltd., Canadian-controlled private corporation. All of the company's assets are used in an active business. The 2019 interest of $1.400, which Cari 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 $12,000 for $20.000. In November. Cari received a legal bil for $2,000 relating to a dispute over a tax resssessment Carl paid $1.200 in December 2020 and the balance in January 2021. Carl received Eligible dividends of $2,000 and Non-eligible dividends of $1.000 from Canadian corporations and $1.800 from a foreign corporation. The foreign corporation remitted a 10% withholding tax to its government. Cari celebrated his 65th birthday in December 2020. He supports his spouse, who is retired. His spouse hoc interest income of $4.000 in 2020. During the year, Carl made gifts of $3,000 to a local charity. He paid tuition fees of $900 to attend a 3-month evening course eta university . . . . . Corl has used his entire capital gain deduction. At the end of 2020, he had unused net capital losses of $12000 and non-capital losses of $7.000. Required: Calculate Carl's minimum 2020 net income for tax purposes, taxable income, and federal income tax. The question is detailing the taxpayer's 2020 income, so you will need to use 2020 federal tax rates to calculate his federal tax owing. The apartment sale will be treated as business income because Carl is in the real estate business development business and it appears that the property was constructed for the purpose of resale. The loss on the loan to Alloy Ltd. can be claimed in 2020. Carl has previously claimed all of his Lifetime Capital Gains Exemption so you will need to assess whether Carl can claim an ABIL. Make sure you take any threshold limitations into account when calculating tax credits. The education and textbook credits were eliminated in 2017 but there is still a tuition credit available. The foreign dividend tax credit is $200 (use this amount in your calculations). s 95,000 10,000 1.000 1,000 S $ 107.000 S 150.000 (135,000 * $ 15,000 Segment A Employment income: Salary Car Standby charge Car Operating benefit Life insurance benefit Stock option Benefit Net Employment Income Business income: Gain on Apartment sale Less reserve on sale of apt Net Business Income Property income: Canadian dividends Eligible Canadian dividends Non-e gible Foreign dividend Bad debt - Alloy interest Net Property Income Segment B Taxable capital gains and Allowable capital losses Taxable capital gains: KM shares Taxable capital gains: Public corporation Bad debt - Alloy Ltd Loan Segment B Sub Total allowed Segment C CPP enhanced contributions Legal bill (tax reassessment) Segment Rental loss Net Income for Tax purposes Stock option deduction Non Capital Loss Carry Forward Taxable income $ $ $ 2.760 1,150 2,000 (1.400) $ 4.510 5 S S 1,500 4.000 (8,000 $ $ $ $ $ 0 (188) (2.000) (7.000) 114.844 (500) (7.000) 107,344 $ wa S S 107 344 19,902 $ $ $ $ Taxable income from above Federal income tax Deduct non-refundable credits: Basic tax credit Spousal tax credit Age tax credit CPP El tax credit Employment tax credit Tuition tax credit Subtotal 15% Donations tax credit Eligible dividends tax credit non-eligible dividends tax credit Basic Federal Tax Foreign dividend tax credit Federal tax payable 0 3.588 1.245 900 5.733 $ S 2001