Question 3 (4 marks)

Elly Ltd. is a Canadian-controlled private corporation that carries on an active business and invests its excess cash in marketable securities. Elly Ltd.s net income for tax purposes (Division B income) for the year ended December 31, 2020, was correctly calculated as $675,000. Included in this amount were the following:

• Eligible dividends from Canadian corporations = $6,700
• Interest income from overdue accounts receivable = $3,500
• Interest income from savings bonds = $8,750
• Taxable capital gains = $13,500

Elly Ltd. has a $5,640 net capital loss carryforward incurred in 2013. Elly Ltd.s objective is to minimize taxes.

Required:

For Elly Ltd.s year ended December 31, 2020, calculate the following:

1. Aggregate investment income (2 marks)
2. Active business income (2 marks)