Question
The following information relates to the operations of Sadaam Ltd. for the taxation year ended December 31, 2019 (all amounts are based on the relevant
The following information relates to the operations of Sadaam Ltd. for the taxation year ended December 31, 2019 (all amounts are based on the relevant tax rules):
Net Business Loss 212,700
Dividends From Taxable Canadian Corporations 50,250
Taxable Capital Gains 14,400
Allowable Capital Losses 6,638
Charitable Donations 8,100
At the beginning of the taxation year, the Company had a carry forward of unused charitable donations of $1,975 from the previous year, and a net capital loss carry forward of $14,500 [(1/2)($29,000)]. It is the policy of the Company to minimize net capital loss balances prior to using any other type of carry over balance. Required: Calculate the corporations minimum Net Income For Tax Purposes and Taxable Income for its 2019 taxation year. Indicate any balances available for carry forward to subsequent years.
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