Determine the amount of Large Store Ltd

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Question - Large Store Ltd. is a Canadian controlled private corporation. Its Net Income For Tax Purposes is $652,000 for the year ending December 31, 2020, all of which is active business income, except for $21,000 in foreign source non-business income. Ten percent of this amount was withheld in the foreign jurisdiction, and the corporation receives a foreign tax credit against federal Tax Payable that is equal to the amount withheld. The corporation's only deduction in the calculation of Taxable Income is for a non-capital loss carry forward of $415,000. The corporation had Taxable Capital Employed In Canada of $12,950,000 for 2019, and $13,100,000 for 2020. It is not associated with any other corporation.

Required - Determine the amount of Large Store Ltd.'s small business deduction for the year ending December 31, 2020.

Reference no: EM133043955

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