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Q1. Mr. Kerr carries on a business as a sole proprietor which uses a December...

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Accounting

Q1. Mr. Kerr carries on a business as a sole proprietor which uses a December 31 fiscal period. In 2022, its first year of operation, there is $40,000 of business income and a taxable capital gain of $6,000[(1/2)($12,000)]. The following amounts relate to the 2023 taxation year: Business Loss -60,000
Taxable Capital Gains 4,500
Allowable Capital Losses -11,000
Required: Mr. Kerr has no other types of income or deductions in either year. Assume that he wishes to minimize any net capital and non-capital losses carried forward. Calculate the following:
1) Net income for tax purposes and taxable income for 2022.
2) Net income for tax purposes and taxable income for 2023.
3) Amended (if any) amounts for 2022 as a result of losses carried over.
4) Indicate the amount and type of any losses available for carry forward to other taxation years after all adjustments have been made.

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