The operations of Balloons Ltd. generated the following data for its current December 31 taxation year: Business losses Dividends received and deducted (Division C) Bond interest Allowable business investment loss Taxable capital gains Allowable capital losses (150,000) 25,000 12,500 (7,500) 37,500 (17,500) (100,000) In the prior taxation year (last year), its first profitable year in several, Balloons Ltd. had taxable income of $100,000. REQUIRED: Compute the non-capital loss for Balloons Ltd. in tShe current year and determine the amount of that loss that can be carried back to the prior year.
The operations of Balloons Ltd. generated the following data for its current December 31 taxation year: Business losses Dividends received and deducted (Division C) Bond interest Allowable business investment loss Taxable capital gains Allowable capital losses (150,000) 25,000 12,500 (7,500) 37,500 (17,500) (100,000) In the prior taxation year (last year), its first profitable year in several, Balloons Ltd. had taxable income of $100,000. REQUIRED: Compute the non-capital loss for Balloons Ltd. in tShe current year and determine the amount of that loss that can be carried back to the prior year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ee 284.
Transcribed Image Text:The operations of Balloons Ltd. generated the following data for its current December 31 taxation year:
Business losses
Dividends received and deducted (Division C)
Bond interest
Allowable business investment loss
Taxable capital gains
Allowable capital losses
(150,000)
25,000
12,500
(7,500)
37,500
(17,500)
(100,000)
In the prior taxation year (last year), its first profitable year in several, Balloons Ltd. had taxable income of $100,000.
REQUIRED: Compute the non-capital loss for Balloons Ltd. in tShe current year and determine the amount of that loss that can be carried back to the prior year.
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