17. During the year ended December 31, 2021, Windsor Ltd., a non-resident controlled private corporation operating in Windsor Ontario, has net income for tax purposes under Division B of $ 750,000, which amount includes $ 70,000 of dividends from taxable Canadian corporations, $50,000 of dividends from U.S. Corporations in which the company has an 11 % common share interest and $ 630,000 of manufacturing and processing profit. The company paid $ 100,000 of charitable donations during the 2021 year. Manufacturing and processing profit earned in a province or territory in Canada was 100%.

The company wants to maximize any claim for the small business deduction.

Required: (show all calculations)

1. Calculate Windsor Ltd.s federal taxable income for 2021.

2. Calculate Windsor Ltd.s 2021 federal Part I tax payable.

3. Calculate Windsor Ltd.s 2021 federal Part I tax payable assuming 70% of M&P profit was earned in a province or territory in Canada.

18. Exco Ltd is a Canadian controlled private corporation with interest income of $ 100,000 and 100% of its active business income of $ 750,000 earned in Ontario for both 2021 and 2020. Exco Ltd. has no associated corporations.

Required: (Show all calculations)

1. Calculate Exco Ltd.s federal income tax payable for 2021 under Part I of the Income Tax Act.