Case #2 Banff Ltd. is a CCPC through the 2021 taxation year. It has a December 31 year end and is not associated with any other companies. Its $422,000 Net Income For Tax Purposes is made up of the following components: Active Business Income $375,000 Dividends From Taxable Canadian Corporations 15,000 Foreign Non-Business Income (100%) 32,000 The foreign jurisdiction withheld $3,200 from the foreign non-business income. The Company receives a credit against federal Tax Payable for this amount. The Company has a non-capital loss carry over of $96,000 that it intends to deduct during 2021. The AAII for Banff Ltd. in the prior year was $42,000 and the TCEC for Banff Ltd. in the prior year was $475,000. Determine Banff's small business deduction for the year ending December 31, 2021.

Case #2 Banff Ltd. is a CCPC through the 2021 taxation year. It has a December 31 year end and is not associated with any other companies. Its $422,000 Net Income For Tax Purposes is made up of the following components: Active Business Income $375,000 Dividends From Taxable Canadian Corporations 15,000 Foreign Non-Business Income (100%) 32,000 The foreign jurisdiction withheld $3,200 from the foreign non-business income. The Company receives a credit against federal Tax Payable for this amount. The Company has a non-capital loss carry over of $96,000 that it intends to deduct during 2021. The AAII for Banff Ltd. in the prior year was $42,000 and the TCEC for Banff Ltd. in the prior year was $475,000. Determine Banff's small business deduction for the year ending December 31, 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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