Corporate Tax Payable with M&P

Zenox Ltd. is a Canadian controlled private corporation (CCPC) with all of its operations located in Saskatchewan. Sharon Zenox owns 100 percent of the outstanding shares of this Company. At the beginning of 2017, the Company has a non-capital loss carry forward of $54,000. The Company intends to deduct this carry forward during the year.

For the 2017 taxation year, Zenox has Net Income For Tax Purposes of $625,000. This is made up of $523,000 in income from business activity and $102,000 in dividends from various Canadian public companies. Using the formula from the Income Tax Regulations, it has been determined that $416,000 of the business income results from manufacturing and processing activity.

During 2017, the Company donated $46,000 to a registered Canadian charity.

Zenox Ltd. is associated with another CCPC. The two companies have agreed that each company will claim one-half of the annual business limit.

Determine the minimum Taxable Income and Part I federal Tax Payable for Zenox Ltd. for the year ending December 31, 2017. Show all calculations, whether or not they are necessary to the final solution. As the corporation operates in a province that has a reduced tax rate for M&P activity, a separate calculation of the federal M&P deduction is required.