(Solution) - Nelson Ltd has net income for tax purposes of 300 000 -(2025 Original AI-Free Solution)

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Nelson Ltd. has net income for tax purposes of $300,000 for the current taxation year. Included in this amount are dividends of $20,000 received from taxable Canadian corporations and taxable capital gains of $15,000. During the year, Nelson Ltd. donated $40,000 to the Canadian Cancer Society. Nelson Ltd. has non-capital losses of $10,000 (incurred last year) and net capital losses of $18,000 (incurred in 2000) available.
Determine Nelson?s taxable income for the current taxation year. Income tax reference: ITA 110.1(1), 111(1)(a), (b), 112(1).