Reference no: EM132853852
DUNN CORP. ( A CCPC)
Active Business Income (from Mfg.) $460 000
Taxable Capital Gain 50 000
Property Income 100 000
Net Income for tax purposes $610 000
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Other Information:
Charitable Donations $102 000
Investment in new machinery that qualifies
for a 5% Investment tax Credit $100 000
Property Income above is composed of:
Dividends received from taxable Cdn. Corp. $20 000
Interest on bonds $30 000
Net Rental Income $50 000
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$100 000
Carryovers available from previous years:
Non-Capital loss $27 000
Capital loss $73 000
Manufacturing and processing eligible profits are $436,410
Wages Sales
Alberta (10% tax on all) $200 000 $400 000
Saskatchewan (14% tax on all) $150 000 $300 000
REQUIRED:
Calculate Active business income (even though it is given)
Compute Total Tax (after credits)
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