Investment Firm Limited (IFL) is a CCPC and it is associated with any Little Investment Firm Limited (LIFL). Facts about the year ending December 31, 2022 of IFL, are:

• Net income and taxable income are both $400,000
• Of the Net Income and Taxable income $300,000 is Canadian Active Business Income and $100,000 is investment income.
• All the Investment income is AAII
• AAII in 2021 was $90,000
• TCEC in 2022 is $8,000,000 and in 2021 was $8,750,000

Facts about LIFL are:

• Takes $200,000 of the business limit allocation for 2022
• TCEC for 2022 and 2021 is $900,000
• AAII for 2021 is $5,000

Determine the amount for IFL that is eligible for small business deduction for the year ending December 31, 2022.

For the following questions, enter your answers to the nearest dollar. Do not enter a dollar sign or decimals but commas and brackets are fine to use.

Net Active Business Income: $ ( 1 mark)

Adjusted Taxable Income: $ (1 mark)

Annual Business Limit:

• Limit allocated to IFL: $ (2 marks)
• AAII Grind Reduction: $ (3 marks)
• Adjusted Business Limit: $ (1 mark)

Amount Eligible for Small Business Deduction: $ (1 mark)

How much would the small business deduction be (round to the nearest whole dollar): $ (1 mark)