- M Inc., a Canadian public corporation, carries on business across Canada. In the current year M Inc. has taxable income of $300,000. What is the amount of federal tax payable?
- B Inc. has net income of $40,000 for the current year, including dividends received from taxable Canadian corporations of $3,000 and taxable capital gains of $5,000. B Inc. donated $35,000 to a registered charity during the year. B Inc. has net capital losses of $6,000 incurred last year. What is B Inc.’s minimum taxable income for the current year?
- D Inc.’s income for the current year consists of interest income of $8,000, a taxable capital gain of $25,000 and a business loss of $40,000. D Inc. has net capital losses of $30,000 incurred two years ago. What is the maximum non-capital loss for the current year?
- On January 16th of the current year, F Inc. acquired 75% of the shares of G Inc. from an arm’s length person. At that time, G Inc. owned Class 8 assets (Fair Market Value $30,000; Cost $50,000; UCC $44,000). What is the amount of the reduction required to the UCC?
- On January 18th of the current year, J Inc. acquired 85% of the shares of K Inc. from an arm’s length person. At that time, K Inc. owned two non-depreciable capital assets: Land (Value $100,000; Adjusted cost base $130,000) and Investment in X Inc. (Value $25,000; Adjusted cost base $20,000). What is the amount of the reduction required to the adjusted cost base of the assets?
Canadian Business Finance Taxation. The current year is 2021.
For Reference you can use – Buckwold (CDN), Canadian Income Taxation, 23e Bill Buckwold, 23ee