Question
Brian Haner owns 100% of Shred Guitar Technology Ltd (SGT). Valerie Benz owns 100% of Tennessee Tours Inc (TT). Brian and Valerie each own 50%
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Brian Haner owns 100% of Shred Guitar Technology Ltd (SGT). Valerie Benz owns 100% of Tennessee Tours Inc (TT). Brian and Valerie each own 50% of Musical Gear Transport Ltd (MGT). Brian is married to Valerie's sister, Michelle.
Assume that the three companies combined have less than $10 million of taxable capital, that each has no passive investment income, and that each has at least $500,000 of active business income earned in Canada. What is the maximum combined corporate income on which the three corporations can claim the small business deduction?
A. NIL
B. $500,000
C. $1,500,000
D. $1,000,000
E. None of the above
Brian Haner owns 100% of Shred Guitar Technology Ltd (SGT). Valerie Benz owns 100% of Tennessee Tours Inc (TT). Brian and Valerie each own 50% of Musical Gear Transport Ltd (MGT). Brian is married to Valerie's sister, Michelle.
Assume that the three companies combined have less than $10 million of taxable capital, that each has no passive investment income, and that each has at least $500,000 of active business income earned in Canada. What is the maximum combined corporate income on which the three corporations can claim the small business deduction?
| A. | NIL | |
| B. | $500,000 | |
| C. | $1,500,000 | |
| D. | $1,000,000 | |
| E. | None of the above |
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Fundamentals of corporate finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
10th edition
978-0078034633
