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Required: For the current taxation year of KT Ltd., calculate (1) net income for tax purposes; (2) taxable income; and (3) total federal income tax.

image text in transcribed

Required: For the current taxation year of KT Ltd., calculate

(1) net income for tax purposes;

(2) taxable income; and

(3) total federal income tax.image text in transcribed

During the current taxation year, KT Ltd., a Canadian-controlled private corporation located in Nova Scotia earned $213,000 of active business income. In addition, the company made the following capital transactions: $ Gain on sale of shares of a public corporation Loss on shares of a public corporation 60,000 (26,000) At the end of the previous taxation year, the following unused losses were available for carry-forward: Net capital losses Non-capital losses $ (35,000) (60,000) 1 Net income for tax purposes 2 Taxable income Federal tax: 3 Total Federal Income Tax

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