Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The correct numbers are: Eligible dividends: 33120 Ineligible dividends: 38525 Interest Income: 22650 Foreign Dividends: 14150 Net rental income: 0 Carrying charges: -10100 Net Property

image text in transcribedimage text in transcribedimage text in transcribed

The correct numbers are:

Eligible dividends: 33120

Ineligible dividends: 38525

Interest Income: 22650

Foreign Dividends: 14150

Net rental income: 0

Carrying charges: -10100

Net Property Income: 98345

Please explain how to reach these numbers

invested most of her past employment earnings into a large portfolio which paid the following amounts during 2020 , the current year. (Click on the icon to view Part 1 of the additional information.) (Click on the icon to view Part 2 of the additional information.) Requirement 1. Compute Dr. Bauer's net property income for 2020. Fill in the table below to compute the net property income. (Round amounts to the nearest cent. Enter deductions with parentheses or a minus sign.) Item Dividends from public Canadian corporations (subject to high corporate tax rates): Dividends from private Canadian corporations (subject to low corporate tax rates): Interest income received from Canadian sources: Dividends from foreign corporations (translated into Canadian dollars): Amount $24,000 33,500 18,000 12,700 Note: Total foreign dividends earned was $14,150 less foreign tax withheld of $1,450. Jayden's portfolio of investments includes a five-year investment contract purchased three years ago on September 1 . The investment contract has a maturity value of $155,000 and an annual interest rate of 3%. The total interest earned on the investment contract will be paid on maturity on September 1, 2022, two years from now. Jayden did not receive any interest (cash) from this investment contract in 2020 . Jayden's portfolio of investments is managed by a large Canadian brokerage firm called Premier Investments Inc. ("Premier") Premier charges Jayden investment counsel fees of $5,300 during 2020. In 2019 , the previous year, Jayden received a large family inheritance, which she invested into a rental property. The property was purchased in 2019, and Jayden has claimed the maximum amount of capital cost allowance (CCA) on the property in 2019. In 2020, the opening UCC balance in CCA Class 1 for the rental building is $335,000 and Jayden would like to claim the maximum CCA deduction on the rental income in 2020. The rental income and expense information for 2020 is as follows. To assist with filing her tax return, Jayden provides you with detailed records from her bank. The documents indicate that Jayden has borrowed the following amounts from her bank. - $190,000 mortgage on the rental property with principal repayments totalling $14,500 and interest payments of $6,700 for 2020 - $355,000 mortgage on Dr. Bauer's personal home with principal repayments totalling $17,500 and interest payments of $7,800 for 2020 - $145,000 loan used to purchase mutual funds with Premier Investments Inc. Jayden paid interest of $4,800 on this loan during 2020. - $51,000 loan used to purchase Jayden's personal use vehicle. Jayden paid $2,380 of interest on this loan during 2020

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

Corporate Accounting Information Systems

Authors: Tony Boczko

1st Edition

0273684876, 978-0273684879

More Books

Students also viewed these Accounting questions