Scandinavo Ltd. is a CCPC that began operations on January 1, 2020 when it was first incorporated and a calendar fiscal period was chosen. Scandinavo Ltd. Is not associated with any other corporations.

For its year ending December 31, 2022, Scandinavo Ltd. has net income of $600,000. The net income is made up of the following:

• Taxable dividends from taxable Canadian corporations of $100,000
• Net active business income of $400,000
• Foreign non-business income of $100,000 which was subject to 15% tax that was withheld. The foreign withheld of 15% is allowed under ITA 126(1)
• Scandinavo Ltd. Has a 2020 non-capital loss carry forward of $150,000 which it intends to deduct in full in 2022 if possible to do so.

Determine the amount eligible for the Small Business Deduction for the year ending December 31, 2022.

For the following questions, enter your answers to the nearest dollar. Do not enter a dollar sign or decimals but commas and brackets are fine to use.

Net Active Business Income: $ ( 1 mark)

Adjusted Taxable Income:

• 2022 TAXABLE Income: $ (2 marks)
• ITA 126(1) Adjustment (Enter as negative in brackets to the nearest dollar):  
• Adjusted Taxable Income: $ (1 mark)

Annual Business Limit: $ (1 mark)

Amount Eligible for Small Business Deduction:  

How much would the small business deduction be (round to the nearest whole dollar):