V. I HIC ICWII OLIE PULLITISHIP CURTISU Y TV,VOV IVI IL yEUI FINITY VELEHIVEI VI, LV2V. THIS PIVILLVISIBLEU VI U PUL,VVV and $8.000 of Interest Income earned on excess undistributed cash deposits. 4. On July 1 of the previous year, Ken purchased a four-year guaranteed Investment certificate for $30,000 that bears Inter Interest compounds annually but Is not payable until the end of the four-year term. Ken did not Include any amount of In year's Income. 5. During the year. one of the Canadian public corporations of which Ken is a shareholder Issued him 100 additional shares The shares had a stated value of $ 44 per share. Ken placed the shares In his safety deposit box along with his other sec 6. Ken's other cash receipts and disbursements for 2020 are shown In the table below. Receipts: Salary from Brickbase $ 82.500 Dividends from Canadian public corporations 8.000 Dividends from foreign public corporations (net of 10% foreign withholding tax) 9.900 Winnings from provincial lottery 2,000 Interest on a loan to his daughter 1,000 Disbursements: Contribution to Brickbase employee pension plan 4.000 Investment counsel fees 1.000 Legal fees for registering mortgage on new warehouse 5.000 Life Insurance premium on policy required as collateral for the bank loan used to purchase 1.000 Brickbase shares Interest on warehouse building mortgage 27.900 Interest paid on house mortgage (The house mortgage is $100.000 of which $70.000 was used to acquire the house. The balance was used to purchase public 10,000 corporation shares.) Interest on bank loan fre: Brickbase shares) 20,000 Donations to local charity 4,000 Safety deposit box fees 100 Required: Determine separately, for the year 2020, Ken's income for tax purposes from employment. business. and property Net Employment Income Business Income S Prev 1 of 3 Next > O A DELLKen Potman Is the sole shareholder In Brickbase Enterprises Lid.. a Regina-based construction company. In addition, Ken is a 35% partner In a retail kitchenware store, although he does not actively participate in its management. The following Information relates to Ken's financial affairs for the year 2020: 1. Brickbase was organized three years ago. For Its year ending May 31. 2020. the company earned a profit of $88.000. Ken originally contributed $200.000 to the corporation, using $50.000 of his own savings and funding the balance with a bank loan. In return, the corporation Issued Ken $1,000 worth of common shares and $199.000 of preferred shares. In 2020. the company pald a dividend of $ 16.000 on the preferred shares. All of Brickbase's Income is subject to the small business deduction. 2. During the year, Ken sold a warehouse property for $180.000 (land $15.000, building $165.000). The building was used by Brickbase to store construction equipment, and the company paid Ken a fair rental for use of the property. The property was originally purchased at a cost of $ 175.000 (land $ 10,000. building $ 165.000). At the end of 2019 the building had an undepreciated capital cost of $110.000 Simultaneously with the sale, Ken purchased a larger warehouse property (constructed after March 18, 2007), which was also rented to Brickbase. The new property cost $400,000 (land $50.000, building $350,000). During the year, the company paid Ken net rents of $ 39,900 for both properties. The new property was financed with the proceeds from the sale of the old building as well as mortgage financing 3. The retail store partnership earned $40.000 for its year ending December 31, 2020. The profit consisted of a $32,000 profit from operations ances and $8.000 of Interest Income earned on excess undistributed cash depositsRequired: Determine separately. for the year 2020, Ken's Income for tax purposes from employment, business, and property. Ipped Net Employment Income 0 Business Income Property Income Book Print Net Property Income S 1 of 3 : Next > O JOC A DELL