Barry and the Wild Bunch Limited, with its head office in Ottawa, Ontario and other permanent establishments in the provinces of New Brunswick and Quebec, and in the United States, has taxable income of $325,000.
Assume that the corporation’s gross revenue and salaries and wages are attributable to its permanent establishments as follows:

REQUIRED

Compute the amount of the company’s taxable income attributable to each province and determine the amount of the company’s abatement.

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Ontario New Brunswick Quebec United States Total Dividends not attributable Gross revenue $ 780,000 2,340,000 2,600,000 390,000 $6,110,000 130,000 $6,240,000 Salaries and wages $ 130,000 520,000 585,000 65,000 $1,300,000 $1,300,000