Please help with the following MC questions:

1. Tyler Ltd owns 100% of Lucy Ltd and 100% of Duke Inc. hence they are all associated. Tyler Ltd. owns 15% of Daisy Ltd which is not an associated company. Tyler Ltd also owns 24% of Sammy Inc. which is also an not an associated company. Each of the five corporations has $400,000 of active business income earned in Canada. Each company had $1,000,000 or less of Taxable Capital. What is the maximum combined corporate income on which the five corporations can claim the small business deduction?

a) $1,500,000

b) $1,200,000

c) $2,000,000

d) $1,300,000

2. The purpose of the Canadian Foreign Country tax treaties is to do all of the below except for?

a) Facilitate and encourage business transactions between countries

b) Prevent tax planning

c) Determine distribution of tax revenues between countries

d) Avoid double taxation