John has the following sources of income and deductions: Employment income $35,000 Interest income 5,000 Taxable dividend income 7,000 Taxable capital gain 5,000 Allowable capital loss 12,000 Subdivisione deductions 2.000

John has the following sources of income and deductions: Employment income $35,000 Interest income 5,000 Taxable dividend income 7,000 Taxable capital gain 5,000 Allowable capital loss 12,000 Subdivisione deductions 2.000

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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Question

John has the following sources of income and deductions:
Employment income
$35,000
Interest income
5,000
Taxable dividend income
7,000
Taxable capital gain
5,000
Allowable capital loss
12,000
Subdivision e deductions
2,000
What is John's Net Income for Tax Purposes?
Select one:
a. $47,000
b. $49,000
c. $45,000
d. $40,000

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