You, CPA, are a corporate tax accountant of a Canadian-controlled private corporation located in Ontario.  The CEO of the company has approached you on February 06, 2023 and would like you to calculate the federal income tax of the company for the taxation year ended December 31, 2022.

You have recently prepared the income statement of the company for the fiscal year ended December 31, 2022:
 

Sales    1,340,000 Cost of goods sold   (789,000)Gross profit       551,000    Expenses  Salaries and wages        98,000  General and administrative         25,500  Depreciation and amortization        34,000  Advertising        20,000  Charitable donation          6,000  Other      18,600   (202,100)        348,900 Other Income  Dividend from Canadian private corporation        11,000  Royalties        21,000  Capital gain on the sale of land  43,000   75,000 Net income before tax   423,900    

You also noted the following:
 

• Other expense contains meals and entertainment expense of $8,800;
   
• Capital cost allowance for 2022 was $28,000;
   
• There is no other associate corporations to share the small business limit; and
   
• unused non-capital loss of $7,500 from prior years.
   

 

Required:
 

For the taxation year ended December 31, 2022, calculate the following
 

a) Net income for tax purposes

b) Taxable income

c) Total federal income tax (ignore Part IV tax of the dividend income)