Sharon is a 40% partner in Green Nursery. She also works full-time as an engineer, earning a gross salary of $100,000 annually. Green Nursery's net income for tax purposes is $210,000. During the year, Green Nursery received $10,000 in non-eligible dividends from a CCPC. The company sold a capital asset and recognized a gain of $16,000. (The dividend income and taxable capital gain
income have been included in the net income for tax purposes.)Sharon withdrew $20,000 from the
partnership during the year. The ACB of Sharon's partnership interest was $75,000 at the end of the previous year.
Required:
A)Calculate the partnership's business income for the year.
B)Calculate Sharon's net income for tax purposes for the year.
C)Calculate the ACB of Sharon's partnership interest for the year for the year.

Question

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The Answer of Sharon is a 40% partner in Green Nursery. She also works full-time as an engineer, earning a gross salary of $100,000 annually. Green Nursery's net income for tax purposes is $210,000. During the year, Green Nursery received $10,000 in non-eligible dividends from a CCPC. The company sold a capital asset and recognized a gain of $16,000. (The dividend income and taxable capital gain
income have been included in the net income for tax purposes.)Sharon withdrew $20,000 from the
partnership during the year. The ACB of Sharon's partnership interest was $75,000 at the end of the previous year.
Required:
A)Calculate the partnership's business income for the year.
B)Calculate Sharon's net income for tax purposes for the year.
C)Calculate the ACB of Sharon's partnership interest for the year for the year.

Sharon Is a 40% Partner in Green Nursery