As a part time employee, Derek earns $20,000 per year of employment income. He recently started up his own business as a sole proprietor. For the current year, his business revenues were $12,000 and his business expenses were $28,000. Derek has some investments that resulted in taxable dividend income of $1,400 and related interest expense of $2,000. Assuming this accounts for all of Derek's income, what is his non-capital loss for the year? a. $600. b. Nil. c. $16,000. d. $3,400.
As a part time employee, Derek earns $20,000 per year of employment income. He recently started up his own business as a sole proprietor. For the current year, his business revenues were $12,000 and his business expenses were $28,000. Derek has some investments that resulted in taxable dividend income of $1,400 and related interest expense of $2,000. Assuming this accounts for all of Derek's income, what is his non-capital loss for the year? a. $600. b. Nil. c. $16,000. d. $3,400.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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As a part time employee, Derek earns $20,000 per year of employment income. He recently started up his own business as a sole proprietor. For the current year, his business revenues were $12,000 and his business expenses were $28,000. Derek has some investments that resulted in taxable dividend income of $1,400 and related interest expense of $2,000. Assuming this accounts for all of Derek's income, what is his non-capital loss for the year?
a. $600.
b. Nil.
c. $16,000.
d. $3,400.
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