4. Which of the following businesses will be subject to Part I tax in Canada?

A. A U.S. company that receives dividends from its Canadian subsidiary.

B. A U.S. company that stores its inventory in a Canadian warehouse.

C. A multinational manufacturing business that has a factory in Canada.

D. A U.S. company that has a temporary office in Canada while searching for a site for its planned Canadian manufacturing plant.

5.. John Do is a resident of the United States, living in Detroit, Michigan. He works

and earns income for the year as follows:

Employment income in Canada (Windsor, Ontario) $50,000

Business income in Canada 35,000

Interest income on bank account in Canada 3,000

Capital gain from disposition of vacant land in Detroit 7,000

What is his Canadian Net Income for Tax Purposes under Part I of the Income Tax Act?

A. $50,000

B. $85,000

C. $88,000

D. $91,500