The controller of ABC Co., a Canadian public corporation, has prepared the accounting income statement for the year ended December 31, 2022:

ABC Co.
Income Statement
For the Year Ended December 31, 2022
Net Sales		$1,381,000
Cost of sales	$645,000
Administrative expenses	298,000	(943,000)
Operating income		438,000
Other revenues & expenses		(149,000)
Income before tax		289,000
Provision for income taxes		(102,700)
Net income		$186,300

ABC Co. has permanent establishments in the United States, Ontario, and Nova Scotia.

Its gross revenues and salaries and wages data is as follows:

	Ontario	Nova Scotia	United States
Gross revenues	$600,000	$400,000	$350,000
Salaries and wages	$165,000	$45,000	$38,000

Additional information:

(1) The following items are included in "Administrative Expenses":

(a) Interest on late income tax payments	$796
(b) Total depreciation expenses for the year	185,600
Note: the company uses the straight-line method, the double-declining-balance method, and the CCA method for Manufacturing buildings, Equipment, and Other Depreciable Assets respectively. Other information includes:
i. Manufacturing buildings: UCC balance at the beginning of the year was $158,250
ii. Equipment (Class 8): UCC beginning balance was $89,700, the company purchased new equipment with a cost of $56,000 and disposed of its old equipment with a cost of $93,800 for $22,410 during 2022
iii. Depreciation expense for Other Depreciable Assets for 2022 was the maximum amount of $106,900
(c) Club dues for the CEO in a local Country Golf Club	2,870
(d) Donations to registered charities	42,800
(e) Property tax with respect to vacant land not being used in the course of the business	6,000
(f) Life insurance premium with respect to the president, the company is the beneficiary	3,760

(2) The following items are included in "Other expenses":

(a) Landscaping of grounds around new premise	$7,300
(b) Fees paid with respect to the investigation of a suitable site for the company's manufacturing plant	23,400

(3) Additional income and loss that are not included in the computation of Net Income:

(a) Dividends received from taxable Canadian corporation	58,200
(b) Dividends received from foreign affiliated corporation	21,000
(c) Foreign interest income, net of $5,500 withholding tax	23,000
(d) Gain from the sale of another piece of land, used in the business, sold for $250,000 in March (purchased for $182,800) at its UCC amount.	67,200
(e) Loss on sale of qualified small business corporation shares purchased for $78,000 and sold for $ 65,000	13,000

(4) Losses carried forward from previous years include:

(a) Non-capital losses carried forward from 2020	10,600
(b) Net capital losses carryover (realized in 1999)	8,000

(5) Assume the foreign tax credits of ABC Co. for 2022 are as follows:

(a) Non-business income foreign tax credits	$4,259
(b) Business income foreign tax credits	$63,800

(6) Assume Ontario has provincial tax rate of 10%, Nova Scotia has 11%. In addition, assume both provinces compute taxes on the same basis as federal tax.

Required:

Calculate the Division B income, Taxable income, Part I Federal Tax Payable, and Total Tax liability for ABC Co. for the 2022 taxation year. (Show all calculations)

Bonus - 5 marks

Calculate the Non-business foreign tax credits for ABC Co. for 2022.