2.

Concept Corp, a CCPC, correctly calculated its taxable income for its year ended December 31, 2020 as follows: Income from retailing business carried on in Canada $120,000 Loss from retailing business carried on in United States (20,000) Interest income from long-term bonds 30,000 Taxable capital gain from sale of a capital asset 5,000 Net income $135,000 Non-capital losses (3,000) Taxable income $132,000 Concept Corp and X Ltd. are associated corporations. X Ltd. claimed a 19% small business deduction on $385,000 for 2020. The taxable capital of Concept Corp and X Ltd. is significantly less than $10 million. Which one of the following amounts is the maximum 19% small business deduction for Concept Corp for 2020? Select one: A. $19,000 o B. $21,850 C. $22,800 D. $25,080 In which of the following situations are X Ltd. and Y Ltd. NOT associated? Select one: O A. Rod owns 10% of voting shares of X Ltd. and 50% of the voting shares Y Ltd. and Patrick owns 60% of the voting shares of X Ltd. and 10% of the voting shares of Y Ltd. Rod and Patrick are not related. OB. The adult son of the controlling shareholder of X Ltd. controls Y Ltd. and owns 25% of the voting shares of X Ltd. O C. A mother controls Company X. Her two adult daughters each own 30% of the voting shares of Y Ltd. Her adult son owns 25% of the voting shares of Y Ltd. OD. A brother and sister each own 30% of the voting shares of Sibco Inc. A mother and father each own 20% of the shares. The mother and father each own 50% of the voting shares of Parentco Inc