During the year ended December 31, 2019, Odette Ltd., a non-resident controlled private corporation operating in Windsor Ontario, has net income for tax purposes under Division B of

$ 900,000, which amount includes $ 100,000 of dividends from taxable Canadian corporations, $200,000 of dividends from U.S. Corporations in which the company has a 15% common share interest and $ 600,000 of manufacturing and processing profit. The company paid $ 200,000 of charitable donations during the 2019 year. Manufacturing and processing profit earned in a province or territory in Canada was 80%.

The company wants to maximize any claim for the small business deduction.

Required: (show all calculations)

1. Calculate Odette Ltd.s federal taxable income for 2019.

2. Calculate federal Part I tax payable.