Complete Solutions Manual for Byrd & Chen's Canadian Tax Principles, 2023|2024 Edition,Volume 2 by Gary Donell, Clarence Byrd, Ida Chen. Full Chapters Solutions included for Volume 2 (Chap 11 - 21)
11 Taxable Income and Tax Payable for Inliiduals Revisited
12 Taxable Income and Tax Payable for ...
It does not include solutions of Tax Software Assignment Problem.
By: simmy94 • 4 months ago
The solution is available real time to check where I am going wrong and gives me access to questions my instructors don't post solutions too so I can practice for exams
By: StepsSol • 4 months ago
Thanks for your honest feedback. Do not forget to visit us again for more documents you need. If you need any other document, let us know so we can help you further. We are available 24/7.
Chapter 11 – Solutions to Assignment Problems
Solution to AP 11-1
2020 Analysis
The required information can be calculated as follows:
ITA 3(a)
Business Income $18,000
Taxable (Grossed Up) Dividends 2,360 $20,360
ITA 3(b)
Taxable Capital Gains $ 600
Allowable Capital Losses (2,100) Nil
ITA 3(c) $20,360
ITA 3(d)
Unrestricted Farm Loss (See Note) (6,250)
2020 Net Income and Taxable Income $14,110
Note Ms. Breau’s farm losses are restricted as follows:
Total Farm Loss $10,000
Unrestricted Amount:
First $2,500 ($ 2,500)
One-Half of $7,500 ($10,000 – $2,500) (3,750) (6,250)
2020 Restricted Farm Loss $ 3,750
As noted in the problem, none of the losses can be carried back before 2020. This would
leave the following 2020 loss carry over balances:
• 2020 Restricted Farm Loss $3,750
• 2020 Net Capital Loss [($2,100 (ITA 3(b)(ii)) – $600 (ITA 3)(b)(i))] $1,500
In this first year the taxable income is less than the required $15,000 to fully utilize available
personal tax credits; however, there is no choice to limit any of the ITA 3 amounts to a smaller
amount so as to achieve the $15,000 taxable income.
2021 Analysis
The required information can be calculated as follows:
ITA 3(a)
Farm Income $ 2,000
Taxable (Grossed Up) Dividends 2,950 $4,950
ITA 3(b)
Taxable Capital Gains $ 1,000
Allowable Capital Losses Nil 1,000
11-1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StepsSol. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R717,92. You're not tied to anything after your purchase.