Question
In current year, Cory Inc. has net income for tax purposes of $400,000 for the current taxation year. Included in this amount are Non-Eligible dividends
In current year, Cory Inc. has net income for tax purposes of $400,000 for the current taxation year. Included in this amount are Non-Eligible dividends of $15,000 received from taxable Canadian corporations and taxable capital gains of $20,000. Cory Inc. has non-capital losses of $15,000 (incurred last year) and net-capital losses of $22,000 (incurred in 2015) available. During the year, Cory Inc. made a contribution of $50,000 to eligible charities. Cory Inc. is not involved in any manufacturing process. For tax purposes, Cory Inc. is associated with Rock Inc. Cory Inc. used $290,000 of the small business deduction limit for its active business income in the current year. Required: Calculate the following for Green Inc. (disregard any provincial tax implications):
a) Active Business Income b) Aggregate Investment Income c) Taxable income d) Small Business Deduction Amount e) General Tax Reduction
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