As a Part Time Employee, Derek Earns $20,000 Per Year

question 97

Multiple Choice

As a part time employee, Derek earns $20,000 per year.He recently started up his own business as a sole proprietorship.For the current year, his business revenues were $12,000 and his business expenses were $28,000.Derek has some investments that re- sulted in taxable dividend income of $1,400 and incurred interest expense of $2,000.Assuming this accounts for all of Derek's sources of income, what is his non-capital loss carry forward for the year?

• A)Nil.
• B)$600.
• C)$3,400.
• D)$16,000.

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Definitions:

Net Cash Provided

The total amount of cash generated by a company's activities, including operating, investing, and financing activities, during a specific period.

Cash Dividends

The distribution of profits by a corporation to its shareholders in the form of cash.

Indirect Method

A technique used in cash flow statements to adjust net income for the changes in non-cash accounts to calculate net cash from operating activities.

Operating Activities

Activities directly related to the primary operations of a business, including production, sales, and day-to-day administration.