Able is a Canadian controlled private corporation (CCPC) with a year end of December 31, 2019. The owner of Able also controls B Corp, another CCPC with active business income for the year ended December 31, 2019 of $116,500. The owner has agreed to allocate a sufficient amount of the small business deduction to B Corp to ensure that all of its active business income is taxed at the lower rate.

Other than the income related items listed below, you may assume that Ables income is from active business in Canada.

Other information about Able:

1. Able had a taxable capital gain in the year of $2,000.

2. Charitable donations were $2,500.

3. Recaptured CCA from operating assets was $1,000.

4. Net Income For Tax Purposes for the year was $185,000.

What is the appropriate small business deduction for ABle?

A. $34,770.

B. $34,675.

C. $35,150.

D. $72,865.

4. A corporation is a CCPC that is not associated with any other corporation. For 2019, it has active business income of $723,000, of which $617,000 involved manufacturing and processing activity. In addition, it has taxable capital gains on the disposition of assets used that were used in the business of $65,000. This results in a Division B of $788,000. This is also the corporations Division C Income. What is the amount of the corporations manufacturing and processing deduction for the year?

A. $80,210

B. $ 6,760

C. $15,210

D. $37,440

5. A CCPC has Division C Income of $250,000 in 2019, 87 percent of which is earned in a Canadian province. The company reported Canadian active business income of $235,000 for the year, and no foreign taxes were paid. The corporation has no M&P activity. It is associated with one other company, which received $200,000 of the annual business limit. What is the federal Tax Payable for the CCPC for the 2019 year?

A. $ Nil.

B. $23,400.

C. $26,650.

D. $29,975.