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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.
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: a) Aggregate investment income (2 marks) b) Active business income (2 marks)
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