Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please respond on excel aul and 1 tab oul otherwise the assignment will net be GradedJohn Lackey lives in Northern Ontario. He is an employee

Please respond on excel aul and 1 tab oul otherwise the assignment will net be GradedJohn Lackey lives in Northern Ontario. He is an employee of the Canadian Tire Corperation. In 2023 his employment income was $61,500.00(t-4). Also herecelved mterest incorse of 52,600.00 and tasable son eligible dividend iscomse af$5,000. This dividend also has a dividend tax credit af $1,500.John also ouns a sole proprietarship called Lackey's Small Repairs. The business was profitable until 2023 wbere he had a business loss of $10,750.00. He tells you that in the addition of the business loss, he has obsolete imentory that he has accumulated over the year. The inventory cost of 120,750 and Mr. Lackey was wondering it he could get capital loss to apply to his capital gains far the current year.In addition, Mr. Lackey also has net rental income of $ 4,500.Nt. Lackey also has investments in share of Bell Canada and Enbridge Inc In 2020 he purchased Bell shares 20005200.00 each and Ealridge 1,500 shares @ 75.00 each. During 2023 the year he sald Beil Shares 200 @ $175.00 and Enbridge shares 200 S150.00. These transactions mere or December 1,2023. OEDecember 20 Mr. Lackey purchased 300 share of Bell Stock $130.00 and 250 shares of Enbndge Stock $145.00. MR. Lackey is boping that the capital loss wil negate the capital gzine.Ar. Lackey sold his Principal Residence in June 2023 for 3750,000 and his purchase price was 3425,000.00 back in 1929. He then moved to his cap which use to be reuted out until June 2023. The cost of the camp and the UCC was 3250,000.00 and the FMV wa: $875,000(Mir Lackey never teal: CCA as he mas going to retire zt camp, he parcbased in 2010)Plezze calculate the divisior B Income, Capital Loss carry forward (if any). Show all of your calculation for the stock transactions for the inclusion or exclusion in the Division B Income, Also show the ACS of the Bell and Echnige Stock.Show all calculation with regard: to the principal residence rule and the tas consequence of moving to the Canip.
Please note any solution that is 0.00 msert this amount or put nil, otharwise it will be marked that vou did not respond lose A mark

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computer Accounting With QuickBooks Pro 2010

Authors: Donna UlmerDonna Kay

12th Edition

0077408756, 9780077408756

More Books

Students also viewed these Accounting questions

Question

=+4. What role do champions have in social media marketing? [LO-5]

Answered: 1 week ago