A. Determine Parker Limited Minimum net income for tax purposes and taxable income for the year ending December 31, 2022

B. Determine Parker Limited's Part I tax payable for the year ending December 31, 2022

Parker Limited You have been engaged to prepare the T2 return for Parker Limited, a Canadian controlled private company operating in the province of Newfoundland and Labrador. The company earns all of its active business income in Canada. The financial information shown in the following table was presented for Parker Ltd. for the year ended December 31, 2022. Statement of Income Sales Cost of sales Gross profits $1,700,000830,000870,000 Expenses: Additional Information:* * All relates to the statement of income. 1. Cost of sales: Opening inventory (at cost) Purchases $280,000970,0001,250,000 The closing inventory at the end of the previous year was valued at the lower of cost or market, which amounted to $270,000. 2. The salaries and wages of $232,000 include salaries of $95,000 to the president, $80,000 to the president's spouse (who works as a full-time manager), and $15,000 to a full-time housekeeper who looks after the children so that the president and the president's spouse can work full-time in the business. 3 5. Interest expense includes interest of $8,000 on a bank loan that was used to purchase new equipment during the previous year. In addition, $1,000 of interest arising from deficient income tax instalments was paid to the CRA. 11. The depreciation/amortization expense of $16,000 is based on the estimated useful life of depreciable property owned (equipment and vehicles). Capital cost allowance for tax purposes has been correctly calculated as $19,000 in total. 12. The loss on sale of securities resulted from the sale of shares in public corporations. These were acquired several years earlier using excess funds not needed for the business. 13. The net gain on the sale of land of $40,000 consists of the following: - Property 1, which was acquired three years earlier at a cost of $100,000 as a potential site for a new head office building. New leased space became available, thus eliminating the need for a new building. Because of this, the land was sold at the market price of $160,000. - Property 2, which was purchased four years earlier. The land was purchased for $90,000 and was sold in the current year for $70,000. You have also been provided with the following information related to various tax accounts of Parker. 1. During 2022,$85,000 of taxable dividends were paid to the shareholders of Parker Limited. Of this amount $25,000 were considered eligible. 2. At December 31, 2021 the balance in the eligible RDTOH account of $20,000 and the balance in non-eligible RDTOH was 0. Parker received an eligible dividend refund in 2021 of $15,000. 3. On January 31, 2021 Parker had a balance in their GRIP account of $185,000. During 2021 the company designated $10,000 of its dividends as eligible. 4. For 2021, Parker had ADJUSTED aggregate investment income of $60,000 and its taxable capital employed in Canada was $2,800,000. 5. For 2021, Parker Limited had not allocated any of its small business limit to Bellino Corp. Bellino Limited did not have any investment income in 2021. For 2022, Parker has decided to allocate $100,000 of the 2022 business limit to Bellino Limited