Waterloo Wholesale Ltd. (WWL) is wholly owned by Barbara, a resident of Canada, who also owns all of the shares of Kitchener Closets Ltd. (KCL). Both corporations have a December 31 year-end. KKL had both active business income and taxable income of $180,000 for its most recent taxation year. Barbara has decided to allocate as much of the small business limit as is needed to maximize the small business deduction for KKL.

Most of WWLs income is from an active business carried on in Canada. The following additional information pertains to WWL: Recapture of CCA on sale of operating assets $2,500 Net taxable capital gains 3,000 Charitable donations 1,500 Division B net income for tax purposes 180,000 What is the appropriate small business deduction for WWL for 2020?

(a) $31,140 (b) $31,860 (c) $31,950 (d) $32,400

(e) 33,630