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Rainbow Co. is a Canadian controlled private corporation with active business income of $350,000 in 2020. The company engages in retail and wholesale activities Capital

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Rainbow Co. is a Canadian controlled private corporation with active business income of $350,000 in 2020. The company engages in retail and wholesale activities Capital gains recognized by the company in 2020 totaled $84,000 Required Calculate Rainbow Companies Part I Federal Tax for 2020 given the following additional information: Business income Taxable capital gain ($84.000 X 5) Net Income for Tax Purposes $350,000 42.000 $392,000 Taxable income $392 000

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