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Terry owns 1 0 0 % of IBM Ltd and 1 0 0 % of both EFG Inc. and MBA Inc. respectively hence they are

Terry owns 100% of IBM Ltd and 100% of both EFG Inc. and MBA Inc. respectively hence they are all associated. Terry also owns 60% of Apple Ltd and 10% XYZ Ltd. which the first one is associated and the second is not associated companies. Each of the five corporations has $400,000 of active business income earned in Canada.
What is the maximum combined corporate income on which the five corporations can claim the small business deduction?
Group of answer choices
$900,000
$2,000,000
$1,000,000
$800,000

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