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%
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 |
Step by Step Solution
3.37 Rating (169 Votes )
There are 3 Steps involved in it
Step: 1
The detailed answer for the above question is provided below The correct answer is C 1500000 Heres t...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Canadian Income Taxation Planning And Decision Making
Authors: Joan Kitunen, William Buckwold
17th Edition 2014-2015 Version
1259094332, 978-1259094330
