A Canadian Controlled Private Corporation which is not associated with any other corporation provided you the following information. ABI $320,000 Investment Income Canadian 17,000 Charitable donations 9,000 Net Capital Loss deducted 2,000 Non Capital Loss deducted 10,000 Taxable income 316,000 Taxable capital employed 11.9 million

Required: Calculate the Small Business deduction and General reduction

Small business deduction 17.5% of lesser of:

(a) Income from an active business .........................

(b) Taxable income .....................................................

(c) Business limit (before reduction) ......................

General reduction13% of

Net Taxable income .............................................................

Less: income eligible for SBD ..................................

. AII ........................................................................

Net ..................................................................................