REQUIRED: Prepare the federal corporate income Tax Summary (1-page PDF copy)

Your First Name Inc. is a Home Centre (that carries building and garden equipment and supplies) and it operates only in the Province of Ontario. Most of its income is earned from an active business. Its main revenue generating business activity is 444110. Its Ontario Corporation number is 1234567. The type of the company is a Limited liability corporation (17).

It is associated with Another Inc. which is also a CCPC and has a December 31 fiscal year end. Use NR for Another Inc.s corporation business number. Another Inc.s Taxable Capital Employed in Canada in 2020 was $1,000,000.

The small business deduction is allocated 40% to Another Inc. and 60% to Your First Name Inc. Your First Name Inc. owns 25% of the voting shares of Another Inc.

As at December 31, 2021, the following information applied to Your First Name Inc.:

Taxable Capital Employed in Canada at the end of 2020 $2,000,000

Eligible RDTOH at the end of 2020 $20,000

Non-eligible RDTOH at the end of 2020 $45,000

Dividends Declared and Paid during 2020 NIL

GRIP Balance at the end of 2020 $100,000

(Assume prior years AAII is zero.)

During the taxation year ending December 31, 2021, the condensed before tax Income Statement of Your First Name Inc. was prepared in accordance with the International Reporting Standards (IFRS) by a professional accountant. There are no notes prepared to this financial statement. In condensed form it is as follows:

Your First Name Inc. Income Statement

Year Ending December 31, 2021

Sales Revenue	$2,400,000
Gain on Sale of Building	250,000	$2,650,000
Amortization Expense	$ 250,000
Other Expenses Excluding Taxes	1,700,000	1,950,000
Accounting Income Before Taxes		$ 700,000

Other information:

1. Other Expenses include interest and penalties of $1,800 as a result of the failure to file the 2020 tax return on time.

2. Other expenses also include a deduction for meals and entertainment of $7,000 and a deduction for membership dues at a Golf and Country Club of $13,000.

3. Other Expenses also include a deduction for charitable donations to the United Way of $96,000.

4. Sales Revenue includes an eligible dividend of $40,000 received from Snow Inc., a taxable Canadian Corporation. Your First Name Inc. is neither associated nor connected with Snow Inc. The dividend received is considered a portfolio dividend.

5. Sales Revenue also includes an ineligible dividend of $80,000 received from Another Inc. Another Inc. received a dividend refund of $120,000 when it paid total dividends of $320,000. The $80,000 that Your First Name Inc. received is 25% of the total dividend.

6. Your First Name Inc. paid a taxable dividend of $45,000 (to other than connected corporations):

Eligible dividends: $10,000 Non-eligible dividends: $35,000

7. During 2021 Your First Name Inc. earned $5,800 of interest income on bonds purchased in 2016 that mature in 2023.

8. Your First Name Inc. has available a non-capital loss carry over of $32,000 from the previous year. It also has a net-capital loss carry over from 2014 of $30,000 (1/2 of $60,000).

9. On January 1, 2021, Your First Name Inc. had the following UCC balances:

Class 1	$250,000
Class 8	$480,000
Class 10	45,000

10. Re. Class 1: The building was acquired on July 1, 2005, for $600,000 of which $200,000 was allocated to the land and $400,000 was allocated to the building. This was the only asset in Class 1.
11. The Gain on the Sale of Building resulted from the sale of the building for proceeds of $850,000 of which $250,000 was allocated to the land and $600,000 was allocated to the building.
12. Re. Class 8: There were no dispositions in Class 8 during the year, but there was an addition of $62,000 to Class 8. This addition was eligible for the Accelerated investment incentive property (AIIP) treatment.
13. Re. Class 10: As Your First Name Inc. has decided to lease all of its vehicles in the future, all of the assets in Class 10 are sold during the year. The capital cost of these assets was $75,000 and the proceeds of disposition amounted to $20,000. The net book value of these assets was $65,000 and the resulting accounting loss of $45,000 was included in Other Expenses.
14. All of the common shares of Your First Name Inc. were owned by Happie Birdman whose SIN # is 123-456-789.
15. The beginning balance in Your First Name Inc.s capital dividend account is nil.
16. Your First Name Inc. paid one federal tax instalment of $155,000 on March 1, 2021.