Reference no: EM132571767

Question - Taxco. Ltd, a CCPC, carries on an active business in Windsor, Ontario. The following detailed information is related to 2019:

Income from an active business $ 150,000 carried on in Canada

Income from an active business 70,000 carried on in Michigan, USA

Interest income on 20,000 Switzerland government bonds

Taxable capital gains 10,000

Dividend income from taxable 40,000

Canadian corporations owned less than 10%

Foreign dividend income from 40,000 companies owned more than 10% with a tax treaty with Canada

Allowable capital losses 8,000

Charitable donations 250,000

Also, the company has $10,000 of net capital losses and $80,000 of non-capital losses being carried forward to 2019 from 2018.

Required - (Show all calculations)

1. Calculate below the income for tax purposes under Division B for 2019.

2. Calculate below the taxable income under Division C for 2019. Claim the maximum allowed charitable donations in your calculation.