Industries Inc. began carrying on business in 2019 and has a December 31 taxation year end. While it was fairly successful in its first year of operation, excessive production of an unmarketable product resulted in a large business loss for 2020. Profits have returned in 2021 and 2022. Find the minimum net income and taxable income for 2019. Indicate the amount and type of any losses that are available to be applied to other taxation years.What is the minimum net income? What is the taxable income? What is the net capital loss? The relevant income and losses, along with charitable donations made during the yearsunder consideration, are as follows.Business Income (Loss)Capital Gains (Losses)Dividends ReceivedCharitable Donations201995,000 $(10,600)12,20020,6002020(208,500) $(14,600)42,8004,800202168,500 $9,20028,0007,700202288,20010,60032,60021,500

Minimum Net Income 2019Minimum Net Income = Business Income + Capital Gains (Losses) + Dividends…

Answered: Find the minimum net income and taxable…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Industries Inc. began carrying on business in 2019 and has a December 31 taxation year end. While it was fairly successful in its first year of operation, excessive production of an unmarketable product resulted in a large business loss for 2020. Profits have returned in 2021 and 2022.

Find the minimum net income and taxable income for 2019. Indicate the amount and type of any losses that are available to be applied to other taxation years.

What is the net capital loss?
What is the minimum net income?
What is the taxable income?

The relevant income and losses, along with charitable donations made during the years
under consideration, are as follows.
Business Income (Loss)
Capital Gains (Losses)
Dividends Received
Charitable Donations
2019
95,000 $
(10,600)
12,200
20,600
2020
(208,500) $
(14,600)
42,800
4,800
2021
68,500 $
9,200
28,000
7,700
2022
88,200
10,600
32,600
21,500

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