Question
Tecniquip Limited is a public corporation whose head office is located in Toronto, Ontario. The activities of the corporation are carried on through permanent establishments
Tecniquip Limited is a public corporation whose head office is located in Toronto, Ontario. The
activities of the corporation are carried on through permanent establishments in the provinces of
Ontario and Alberta.
For the year ended December 31, 2020, Tecniquip Limited obtained the following results:
Income from distribution operations in Ontario
.................
$1,000,000
Income from distribution operations in Alberta
..................
1,040,000
$2,040,000
Canadian-source interest income (investment)
..................
32,000
Taxable capital gain
.....................................
.
10,000
Taxable dividends from taxable Canadian corporations
............
15,000
Net income under Division B
..............................
.
$2,097,000
In computing income from distribution, the corporation claimed a deduction of $150,000 under
subsection 37(1) of the Act for SR&ED. No SR&ED expenditures are expected to be made in 2021.
During the year, the corporation made charitable donations totalling $50,000 and claimed non-
capital losses of $60,000 and the net capital losses carried forward from 2015 of $6,000.
You have been asked to calculate the federal Part I tax payable. Show all calculations, whether or necessary to your final answer.
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