Assignment task: (Corporate Taxable Income)
Cabrera Digital is a Canadian public company. It has always used a calendar-based taxation year. During its 2023 taxation year ending December 31, 2023, it had business revenues of $1,234,000 and business expenses of $962,000, resulting in business income of $272,000. The business revenues and business expenses have been determined based on the ITA and no reconciling adjustments are required. Also in 2023, the company received the following taxable dividends:
- Non-eligible dividends from a wholly owned (100%) subsidiary $23,600
- Eligible dividends from Canadian public companies 61,300
The company's only other property income was a $156,000 taxable capital gain on a sale of temporary investments. Because of this fortunate investment result, the company decides to make a $241,000 donation to a registered Canadian charity. No capital gains are anticipated in the foreseeable future.
At the beginning of the 2023 taxation year, the company had the following carry over balances:
- 2021 net capital loss $262,000
- 2019 non-capital loss 193,000
Required: Calculate the minimum 2023 net income and taxable income for Cabrera Digital. Indicate the amount and type of any carry over balances that are available to be applied to other taxation years.