PLEASE SHOW YOUR CALCULATIONS, THANKS

Rouge Ltd. is a Canadian controlled private corporation that is associated with another corporation during the current year. In the current year, Rouge Ltd. is allocated $100,000 of the annual business limit, which is the figure used to calculate the small business deduction for the corporation in the current year. Rouge Ltd. primarily earns income from manufacturing and processing activities. In the current year, Rouge Ltd. has net income for tax purposes of $152,000. This income is comprised of the following amounts: Manufacturing & processing profits Dividend income from taxable Canadian corporations Canadian source interest income $122,000 $ 20,000 $ 10,000 Which of the following is the correct Manufacturing & Processing Profits Deduction for Rouge Ltd. in the current year? A. $1,300 B. $3,900 C. $2,860 D. $17,160