Question

The following cases makes different assumptions with respect tothe amounts of income and deductions of Mr. Michel Daigle for thecurrent taxation year under the various subdivisions of Division Bof the Income Tax, and the last two previous years’ taxespayable:

Case 2-A

Employment Income	$35,000
Income (Loss) From Business	(10,000)
Income From Property	12,000
Taxable Capital Gains	42,000
Allowable Capital Losses	(18,000)
Subdivision E Deductions (Spousal Support)	(4,000)

Taxable Income Previous Years:

2016: $10,000

2017: nil

Case 2-B

Employment Income	$33,000
Income (Loss) From Business	(39,000)
Income From Property	14,000
Taxable Capital Gains	36,000
Allowable Capital Losses	(42,000)
Subdivision E Deductions (Spousal Support)	(7,000)

Taxable Income Previous Years:

2016: $10,000

2017: $8,000

Required: For Both cases, calculate Mr.Daigle’s Net Income for tax purposes, indicate any possible losscarryovers from the current year, taxes payable for current year,and calculate require installment payment for current year.

(assume Federal rate of 15% and Provincial Rate of 7%)