You are provided with the following amounts for Diane Welsey for the current year: -Net employment income (ITA 5 to 8) = $70,000 - Interest income (ITA 12) = $5,500 - Taxable amount of dividends (ITA 12) = $2,640 - Taxable capital gains (ITA 38 to 55) = $3,000 - Allowable capital losses (ITA 38 to 55) = $4,000 - Interest expense (bank loan for investment purposes) = $3,000 - Investment counsel fees = $700 - RRSP deduction (allowed pursuant to ITA 60) = $11,500 Based on the above, the "net property income" reported by Diane Welsey pursuant to ITA 3(a) for th
You are provided with the following amounts for Diane Welsey for the current year: -Net employment income (ITA 5 to 8) = $70,000 - Interest income (ITA 12) = $5,500 - Taxable amount of dividends (ITA 12) = $2,640 - Taxable capital gains (ITA 38 to 55) = $3,000 - Allowable capital losses (ITA 38 to 55) = $4,000 - Interest expense (bank loan for investment purposes) = $3,000 - Investment counsel fees = $700 - RRSP deduction (allowed pursuant to ITA 60) = $11,500 Based on the above, the "net property income" reported by Diane Welsey pursuant to ITA 3(a) for th
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A 1.
Transcribed Image Text:You are provided with the following amounts for Diane Welsey for the current year:
• Net employment income (ITA 5 to 8) = $70,000
• Interest income (ITA 12) = $5,500
Taxable amount of dividends (ITA 12) = $2,640
.
Taxable capital gains (ITA 38 to 55) = $3,000
• Allowable capital losses (ITA 38 to 55) = $4,000
• Interest expense (bank loan for investment purposes) = $3,000
• Investment counsel fees = $700
• RRSP deduction (allowed pursuant to ITA 60) = $11,500
Based on the above, the "net property income" reported by Diane Welsey pursuant to ITA 3(a) for the current year is:
●
Choose the correct answer.
OA. $8,140
OB. $68,460
O C. $7,140
OD. $4,440
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