During the year ended December 31, 2019, Odette Ltd., a public corporation, has net income for tax purposes under Division B of $ 800,000, which amount includes $ 200,000 of dividends from taxable Canadian corporations and $ 600,000 of manufacturing and processing profit which is eligible for the M&P profit deduction for tax purposes. The company paid $200,000 of charitable donations during the 2019 year. Income earned in a province or territory in Canada was 90%.

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.

Answer:

1. Odette Ltd Federal Taxable Income for 2019

2. Odette Ltd. Part I Tax Payable