Calculate brown minimum net income for tax purposes

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Reference no: EM132795268

Question - John Brown's financial transactions for 2019 are summarized below.

1. Brown's gross salary this year was $50,000

In addition, Brown had the following benefits:

A group term life insurance policy for $100,000 (premium cost, $500).

A cash bonus of $3,000 that was awarded to him in the previous year and that he received in the current year.

2. Brown had a small retail business as a sole proprietorship and had a net loss of $10,000 this year

3. In 2019, Brown received a stock dividend of 100 shares of Canadian public Rogers with a fair market value of $10 per share.

4. Brown had the following additional receipts in 2019:

CIBC Dividends (public company) $2,000.

Interest on bonds 1,000.

5. Brown sold the following assets in 2019:

Cost Proceeds

Public BCE shares $10,000 $20,000

Public Royal bank shares 10,000 5,000

Stamp collection 8,000 12,000

Jewellery 2,500 500

6. Brown paid out the following in 2019:

Contribution to an RRSP 2,800

Required - Calculate Brown's minimum net income for tax purposes for the 2019 taxation year in accordance with the aggregating formula of section 3 of the Income Tax Act. Omit any items that do not impact net income for tax purposes.

Reference no: EM132795268

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