The corporation’s name is “Your First Name” Inc. and has a December 31 fiscal year-end. Use NR for the corporation’s business number. It is a Canadian Controlled Private Corporation (CCPC) based in Ontario.
“Your First Name” Inc. was incorporated in Ontario on March 1, 2002. Its head office is located at 200 King Street, Toronto, Ontario, M5A 3W8. Its telephone number is (416) 111-1111. The signing officer and contact person are the President/Director of the corporation, Lance Sterling.
“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 active business. Its main revenue-generating business activity is 444110. Its Ontario Corporation number is 1234567. The type of 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 2018 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 of December 31, 2019, the following information applied to “Your First Name” Inc.:

Taxable Capital Employed in Canada at the end of 2018 $2,000,000
RDTOH at the end of 2018 $70,000
Dividends Declared and Paid during 2018 NIL
GRIP Balance at the end of 2018 NIL
Adjusted Aggregate Investment Income during 2018 NIL

During the taxation year ending December 31, 2019, the condensed before tax Income Statement of “Your First Name” Inc. was prepared in accordance with the International Reporting Standards (IFRS). There are no notes prepared for this financial statement. In condensed form it is as follows:

“Your First Name” Inc.
Income Statement
Year Ending December 31, 2019

Sales Revenue $3,000,000
Gain on Sale of Building 250,000 $3,250,000

Amortization Expense $ 400,000
Other Expenses Excluding Taxes 1,800,000 2,200,000

Accounting Income Before Taxes $1,050,000

Other Information

1. Other Expenses include interest and penalties of $3,000 as a result of the failure to file the 2018 tax return on time.
2. Other expenses also include a deduction for meals and entertainment of $6,000 and a deduction for membership dues at a Golf and Country Club of $15,000.
3. Other Expenses also include a deduction for charitable donations to the United Way of $24,000.
4. Sales Revenue includes an eligible dividend of $50,000 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 $90,000 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 ineligible dividend of $40,000 (to other than connected corporations).
7. During 2019 “Your First Name” Inc. earned $100,000 of interest income on bonds purchased in 2015 that mature in 2020.
8. “Your First Name” Inc. has available a non-capital loss carryover of $20,000 from the previous year. It also has a net-capital loss carryover from 2011 of $30,000 (1/2 of $60,000).

9. On January 1, 2019, “Your First Name” Inc. had the following UCC balances:
Class 1 $200,000
Class 8 $575,000
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 (hence the capital cost, $400,000 was allocated to the building). This was the only asset in Class 1.
11. The Gain on the Sale of the Building resulted from the sale of the building for proceeds of $850,000 of which $250,000 was allocated to the land upon which the building was situated (hence $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 $80,000 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 netbook value of these assets was $55,000 and
the resulting accounting loss of $35,000 was included in Other Expenses.
14. All of the common shares of “Your First Name” Inc. were owned by Walter Smart 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 installment of $250,000 on March 1, 2019.

Required

Prepare the federal corporate income tax return for “Your First Name” Inc. for the 2019 taxation year using the PROFILE T2 software program.