Question 1 (20 marks) The following financial information is provided for the 2021 taxation year for Andrea Wilson: Interest income $25,000 Net loss from retail store for the year ended December 31, 2021 (9,000) Gain on sale of public corporation shares 20,000 Loss on sale of shares of a CCPC qualified as a small business corporation (14,000) Dividends from foreign corporations, net of $200 withholding tax 1,800 Loss on sale of land that was originally purchased to build a rental property. The project was cancelled after a rezoning application was lost. (48,000) Gain on sale of an oil painting 5,000 Director's fees for attendance at corporate meetings 8,000 Loss on sale of personal jewellery (6,000) Also in 2021, Andrea had a rental loss of $4,000 (before amortization depreciation and capital cost allowance). The property was originally purchased for $80,000 (land - $19.000, building - $61,000). The Class 1 building had an unamortized capital cost of $50.000 at the end of the previous year. On the last day of 2021. Andrea sold the property for $120.000 (land - $32,000, building - $88,000). In the previous year, by agreement. Andrea obtained the exclusive license to distribute a certain product in Canada. In 2021, she divided the country into six sales territories and sold 10-year sub- licenses to individuals in each territory. Total proceeds were $26.000 Required: Calculate Andrea's net income for tax purposes for the 2021 taxation year in accordance with the aggregating formula of Section 3 of the Income Tax Act. Assume Other deductions total $3.000. Question 1 (20 marks) The following financial information is provided for the 2021 taxation year for Andrea Wilson: Interest income $25,000 Net loss from retail store for the year ended December 31, 2021 (9,000) Gain on sale of public corporation shares 20,000 Loss on sale of shares of a CCPC qualified as a small business corporation (14,000) Dividends from foreign corporations, net of $200 withholding tax 1,800 Loss on sale of land that was originally purchased to build a rental property. The project was cancelled after a rezoning application was lost. (48,000) Gain on sale of an oil painting 5,000 Director's fees for attendance at corporate meetings 8,000 Loss on sale of personal jewellery (6,000) Also in 2021, Andrea had a rental loss of $4,000 (before amortization depreciation and capital cost allowance). The property was originally purchased for $80,000 (land - $19.000, building - $61,000). The Class 1 building had an unamortized capital cost of $50.000 at the end of the previous year. On the last day of 2021. Andrea sold the property for $120.000 (land - $32,000, building - $88,000). In the previous year, by agreement. Andrea obtained the exclusive license to distribute a certain product in Canada. In 2021, she divided the country into six sales territories and sold 10-year sub- licenses to individuals in each territory. Total proceeds were $26.000 Required: Calculate Andrea's net income for tax purposes for the 2021 taxation year in accordance with the aggregating formula of Section 3 of the Income Tax Act. Assume Other deductions total $3.000
