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Solve this way In 2023, Sophie had employment income of $95,000 from a large Canadian public company that has annual gross revenue of $600 million.
Solve this way In 2023, Sophie had employment income of $95,000 from a large Canadian public company that has annual gross revenue of $600 million. She is granted access to a stock option plan in November 2022 where she can acquire 15,000 shares of the company for $25 each beginning in 2023. The FMV of the shares at the time of the stock option plan is granted is $20 each. Sophie purchases all 15,000 shares of the stock option plan for $25 in March 2023 when the shares are trading for $28. Sophie then sells all of the shares for $30 in February 2024. In addition, she had the following income in 2023. Interest income $2,500 Taxable capital gain (not from option stocks) $12,000 Sole-proprietorship business income $25,000 Unrestricted farming income $9,000 Limited partnership income $5,000 Sophie approached to you for tax advises. After interviewing her, you explored that she had some loss carry forward balances from 2022 as follows: Loss carry forward balances on December 31, 2022 Taxable capital loss $14,000 Sole-proprietorship business loss $35,000 Allowable business investment loss (ABIL) $12,000 Unrestricted farming loss $11,000 Limited partnership loss $7,500 She has a basic personal amount (BPA) credit of $15,000. She donated $1,500 in 2023. Required: Calculate net income for 2023. Show the breakdown of Division C deductions for 2023. Calculate taxable income for 2023. Show the carry forward balance at the end of 2023. Calculate tax pay
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