Ontario Ltd , a CCPC, is a landscaping supplies wholesaler The Income Statement for the year ended December 31, 2013, reported a net income before tax of $279,141 You have been retained to determine the corporation's income tax liability and minimum net federal taxes payable You have gathered the following information relating to specific income and expense items included in the income statement to arrive at the net income before tax for 2013 Legal expenses 1 $ 3,000 Depreciation 46,000 Interest income 27,660 Taxable dividend received Feb 12,2013 from a non connected company 1,300 Gain on sale of furniture 2 35,000 You are also given the following additional information CCA available to Ontario for the year 96,800 Non capital loss carry forward (from 2011) 62,000 Charitable donations (carried forward from 2010) 3,000 Net capital loss (from 1999) 2,500 Dividends paid August 15, 2013 50,000 Opening balance RDTOH account 1,500 1 Legal expenses include $2,875 for negotiating and drafting a security agreement for a bank loan, and $125 for filing the annual corporate return 2 The book gain is a result of a sale of the companys office furniture for $50,000 under Class 8 Class 8 has an undepreciated capital cost of $46,000 as at January 1, 2013 The furniture originally cost $130,000 Ontario Ltd is now using leased furniture Required For the taxation year ended December 31, 2013, compute Ontario Ltd s Net income for tax purposes Taxable income Compute Ontario Ltd s minimum net federal tax payable for 2013 To obtain maximum marks, you must show all calculations including any adjustments required to calculate active business income

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Ontario Ltd., a CCPC, is a landscaping supplies wholesaler. The Income Statement for the year ended December 31, 2013, reported a net income before tax

Ontario Ltd., a CCPC, is a landscaping supplies wholesaler. The Income Statement for the year ended December 31, 2013, reported a net income before tax of $279,141.

You have been retained to determine the corporation's income tax liability and minimum net federal taxes payable. You have gathered the following information relating to specific income and expense items included in the income statement to arrive at the net income before tax for 2013:

Legal expenses¹	$ 3,000
Depreciation	46,000
Interest income	27,660
Taxable dividend received Feb 12,2013 from a non-connected company	1,300
Gain on sale of furniture²	35,000

You are also given the following additional information:

CCA available to Ontario for the year	96,800
Non-capital loss carry forward (from 2011)	62,000
Charitable donations (carried forward from 2010)	3,000
Net capital loss (from 1999)	2,500
Dividends paid August 15, 2013	50,000
Opening balance RDTOH account	1,500

¹ Legal expenses include $2,875 for negotiating and drafting a security agreement for a bank loan, and $125 for filing the annual corporate return.

²The book gain is a result of a sale of the companys office furniture for $50,000 under Class 8. Class 8 has an undepreciated capital cost of $46,000 as at January 1, 2013. The furniture originally cost $130,000. Ontario Ltd. is now using leased furniture.

Required

For the taxation year ended December 31, 2013, compute Ontario Ltd.s

Net income for tax purposes

Taxable income

Compute Ontario Ltd.s minimum net federal tax payable for 2013. To obtain maximum marks, you must show all calculations including any adjustments required to calculate active business income.