AP 1-13 Net Income-Four Cases The following four cases make different assumptions with respect to the amounts of income and deductions of Frank Denham for the current year: Employment income Income (loss) from business Rental income (loss) Taxable capital gains Allowable capital losses Subdivision e deductions Case A $58,200 (12,300) 5,400 31,600 (12,400) (4,100) Case B $82,600 (8,400) 12,200 15,600 (23,400) (5,400) Case C $46,700 ( 62,300) 2,600 11,600 (10,700) ( 11,600) Case D $33,400 (46,200) (18,300) 23,100 ( 24,700) (5,600) Required: For each case, calculate Mr. Denham's current-year net income. Indicate the amount and type of any loss carry overs for the current year or state that there are no current-year loss carry overs.
AP 1-13 Net Income-Four Cases The following four cases make different assumptions with respect to the amounts of income and deductions of Frank Denham for the current year: Employment income Income (loss) from business Rental income (loss) Taxable capital gains Allowable capital losses Subdivision e deductions Case A $58,200 (12,300) 5,400 31,600 (12,400) (4,100) Case B $82,600 (8,400) 12,200 15,600 (23,400) (5,400) Case C $46,700 ( 62,300) 2,600 11,600 (10,700) ( 11,600) Case D $33,400 (46,200) (18,300) 23,100 ( 24,700) (5,600) Required: For each case, calculate Mr. Denham's current-year net income. Indicate the amount and type of any loss carry overs for the current year or state that there are no current-year loss carry overs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7
Transcribed Image Text:AP 1-13 Net Income-Four Cases
The following four cases make different assumptions with respect to the amounts of income and
deductions of Frank Denham for the current year:
Employment income
Income (loss) from business
Rental income (loss)
Taxable capital gains
Allowable capital losses
Subdivision e deductions
Case A
$58,200
(12,300)
5,400
31,600
(12,400)
(4,100)
Case B
$82,600
(8,400)
12,200
15,600
(23,400)
(5,400)
Case C
$46,700
( 62,300)
2,600
11,600
(10,700)
( 11,600)
Case D
$33,400
(46,200)
(18,300)
23,100
( 24,700)
(5,600)
Required: For each case, calculate Mr. Denham's current-year net income. Indicate the amount
and type of any loss carry overs for the current year or state that there are no current-year loss
carry overs.
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