TRUE OR FALSE QUESTIONS Chartco Inc , a Canadian public company, owns 100 of ABC Inc which carries on a business solely in Canada ABC Inc is eligible for the small business deduction on its active business income in an amount determined by Chartco Inc and ABC Inc annually not to exceed $ 500,000 Marmidan Inc is a CCPC with active business income of $ 500,000 all earned from a manufacturing business in Canada Based on this information, the company will not claim the manufacturing and profit deduction of its business income Mr X owns 51 of X Corporation Mr Y, who is Mr Xs brother, owns 51 of Y Corporation The remaining shares in both X and Y Corporation are owned by individuals who are unrelated to Mr X and Mr Y Based on this information only, X Corporation is associated with Y Corporation for income tax purposes Mr X owns 51 of X Corporation Mr Y, who is Mr Xs son, owns 51 of Y Corporation Based on this information, X Corporation is related with Y Corporation for income tax purposes Mr X owns 51 of X Corporation Mrs X owns 51 of Y Corporation Mr X and Mrs X each own 50 of M Corporation Based only on this information, the three corporations are not associated for tax purposes Mr X has a 51 beneficiary interest in a family trust which owns 100 of ABC Ltd Mr X also personally owns 51 of MAR Corporation with other unrelated shareholders Based only on this information, ABC Ltd and MAR Corporation are associated for tax purposes Eligible scientific research and development expenditures incurred in Canada by Investment tax credits claimed on equipment purchase reduce the relevant U C C pool in the same year that the investment tax credit is used to reduce income tax payable

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Posted on Aug 30, 2024

TRUE OR FALSE QUESTIONS Chartco Inc., a Canadian public company, owns 100% of ABC Inc. which carries on a business solely in Canada. ABC Inc

TRUE OR FALSE QUESTIONS

Chartco Inc., a Canadian public company, owns 100% of ABC Inc. which carries on a business solely in Canada. ABC Inc is eligible for the small business deduction on its active business income in an amount determined by Chartco Inc. and ABC Inc. annually not to exceed $ 500,000.
Marmidan Inc. is a CCPC with active business income of $ 500,000 all earned from a manufacturing business in Canada. Based on this information, the company will not claim the manufacturing and profit deduction of its business income.
Mr. X owns 51% of X Corporation. Mr. Y, who is Mr. Xs brother, owns 51% of Y Corporation. The remaining shares in both X and Y Corporation are owned by individuals who are unrelated to Mr. X and Mr. Y. Based on this information only, X Corporation is associated with Y Corporation for income tax purposes.
Mr. X owns 51 % of X Corporation. Mr. Y, who is Mr. Xs son, owns 51 % of Y Corporation. Based on this information, X Corporation is related with Y Corporation for income tax purposes.
Mr. X owns 51 % of X Corporation. Mrs. X owns 51 % of Y Corporation. Mr. X and Mrs. X each own 50% of M Corporation. Based only on this information, the three corporations are not associated for tax purposes.
Mr. X has a 51% beneficiary interest in a family trust which owns 100% of ABC Ltd. Mr. X also personally owns 51% of MAR Corporation with other unrelated shareholders. Based only on this information, ABC Ltd. and MAR Corporation are associated for tax purposes.
Eligible scientific research and development expenditures incurred in Canada by Investment tax credits claimed on equipment purchase reduce the relevant U.C.C. pool in the same year that the investment tax credit is used to reduce income tax payable.