ABC MFG Kids Inc. is a manufacturer of ABC. The companys headquarters are in Toronto, Ontario. The year-end is December 31, and Mr. Tony ABC, a Canadian resident, wholly owns the company. The companys unaudited income statement is presented below, along with additional information.

ABC MFG Inc. Income Statement for the year ended December 21, 2020. (Unaudited) 0BREVENUE Sales & Other Revenue (see Note) $2,300,000 Cost of goods sold Opening inventory $ 500,000 Purchases 650,000 Ending inventory (252,000) $ 898,000 Gross Margin $ 1,402,000 1BEXPENSES Rent $ 200,000 Salaries and benefits 500,000 Management salaries 80,000 Employee Benefits 95,000 Interest on late payment of income taxes 2,500 Loss on sale of computer equipment (note 2) 1,500 Business meals & entertainment 10,000 Professional fees 5,000 Repairs and maintenance 22,000 Dues and subscription (note 3) 25,000 Business Insurance 17,000 Office expenses 16,000 Qualified charitable donations 5,000 Marketing Expense 12,000 Depreciation expense (note 1) 25,000 $1,016,000 Net income before tax provision $386,000 Provision for income taxes (Cdn and Foreign) $50,000 Net income $336,000.

Note 1: significant accounting polices The companys financial statements have been prepared in accordance with generally accepted accounting principles. Inventories are valued at the lower of cost and net realizable value. Any adjustments are recorded in the income statement as adjustment of inventory to market. The companys capital assets are comprised of office furniture and equipment used in the manufacturing and processing of the products they sell. The office equipment is depreciated on a double declining basis at 20%. For income tax purposes the opening balance in the undepreciated capital cost was $175,000 for the small building (class 1-4%), and $30,000 for the office furniture (Class 8). Additions to Building (class 1-4%) during year totaled $35,000. Note 2: Loss on sale of computer equipment During the year, the company disposed of some computer equipment (class 50) with a net book value of $3,500 (cost $10,000, accumulated depreciation of $6,500) for $2,000. For income tax purposes, these are the last items in class 50, with an opening UCC of $3,000. Note 3: Dues and subscriptions Included in dues and subscriptions are annual membership dues paid to Mr. ABC MFGs country club for $10,000. Other information: 1. The company has unused non-capital losses from the year 2010 year-end of $10,000, and from the year 1982 year-end of $ 30,000. (hint enter Business Loss Carry forward on Schedule 4, Line 102) 2. Included in other Revenues: was Dividends (Eligible) received from a Canadian Corporation (non-connected) for $10,000. Also received a $5,000 dividend (non-eligible) from another Canadian Connected Company (80% ownership, connected company received a $2,000 dividend refund this year.) Interest Earned from a CDN bank was $20,000. Interest Earned from a USA Bank was cdn $10,000 before USA Tax of cdn$1,000. (hint: process non-business Foreign Tax Credit see Line 632) 3. ABC MFG also paid out Dividends (non-eligible) for $30,000 and had a Non-Eligible RDTOH opening balance of $100,000. Eligible RDTOH Opening Balance was $0. Required: Use CANTAX software and prepare the corporations income tax return for the year ended December 31, 2020.