Harper, a CCPC, owns 80% of voting shares of Bazaar, also a CCPC. Harper earns ABI and taxable income of $400,000 in the current taxation year. Bazaar earns ABI and taxable income of $200,000 and claims an SBD of $38,000 in the current taxation year. Both Harper and Bazaar have a December 31 year end. Which of the following statements is true?

1)Harper is associated with Bazaar and is entitled to claim an SBD of $57,000.

2)Harper is not associated with Bazaar and is entitled to claim an SBD of $76,000.

3)Harper is associated with Bazaar and not entitled to claim an SBD.

4)Harper is associated with Bazaar and is entitled to claim an SBD of $76,000.