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

See similar textbooks

Similar questions

During the year, JK Corporation has gross sales of P20,000,000 and operating expenses of P2,000,000, inclusive of representation expense amounting to P300,000 with proper documentation. How much is the allowable regular itemized deductions? A foreign corporation sold a condominium unit to Mr. Mauricio for P10 million which it acquired at a cost of P5 million. The fair market value of the said property per tax declaration was P12 million while its zonal value was P15 million. How much is the capital gains tax?
Subject:
Sweat Inc. is a CCPC throughout the year and is not associated with any other corporation. For the year ending December 31, 2021, Sweat has Net Income for Tax Purposes of $422,000. This amount is made up of dividends from taxable Canadian corporations of $22,000, active business income of $380,000, and foreign non-business income of $20,000. The foreign income was subject to withholding in the foreign jurisdiction at a rate of 13 percent. Sweat receives a foreign tax credit against federal Tax Payable that is equal to the amount withheld. Sweat has a non-capital loss carry forward of $145,000 which it intends to deduct during 2021. The AAII for Sweat Inc. in the prior year was $35,000 and the TCEC for Sweat Inc. in the prior year was $375,000. Determine Sweat s small business deduction for the year ending December 31, 2021.
The following information relates to the operations of Sadaam Ltd. for the taxation year ended December 31, 2019 (all amounts are based on the relevant tax rules): Net Business Loss 212,700 Dividends From Taxable Canadian Corporations 50,250 Taxable Capital Gains 14,400 Allowable Capital Losses 6,638 Charitable Donations 8,100 At the beginning of the taxation year, the Company had a carry forward of unused charitable donations of $1,975 from the previous year, and a net capital loss carry forward of $14,500 [(1/2)($29,000)]. It is the policy of the Company to minimize net capital loss balances prior to using any other type of carry over balance. Required: Calculate the corporation's minimum Net Income For Tax Purposes and Taxable Income for its 2019 taxation year. Indicate any balances available for carry forward to subsequent years.
Qalvin Corporation, a MSME, reported the following gross income and expenses in 2022: Philippines Abroad Total Gross income P400,000 P300,000 P700,000 Deductions 200,000 150,000 350,000 Taxable income P200,000 P150,000 P350,000 Compute the income tax due if Qalvin is an International Carrier.
ABC SAOG is a taxable entity in Oman. The business incurred General expense of OMR 12,500 during the tax year 2019 was charged on the Profit & Loss Account. Investigation records shows that OMR 5,000 of the above expenses are not related to the purpose of producing the gross income. The tax treatment for the tax year 2019 is a. Non-deductible expenditure of OMR 7,500 b. Deductible expenditure of OMR 5,000 c. Non-deductible expenditure of OMR 5,000 d. Non-deductible expenditure of OMR 12,500
Which of the following statements is incorrect? Some corporations can use the cash-basis of accounting. Corporations that own foreign subsidiaries cannot file a Form 1120. A corporation can choose a fiscal year-end of its choice when filing its first tax return. A calendar year corporate tax return is due 3½ months after the end of the fiscal year
XY is a domestic corporation in the philippines. The corporation started operating year 2017. The taxable period is 2021 year gross income deductions net 2017 5,000,000 6,000,000 -1,000,000 2018 6,000,000 5,500,00 500,000 2019 6,000,000 4,000,000 2,000,000 2020 3,000,000 4,000,000 -1,000,000 2021 5,000,000 3,900,000 1,100,000 HOW MUCH IS THE regular CORPORATE INCOME TAX THAT SHOULD BE PAID IN 2021 275,000 50,000 25,000 20,000 Zero WHAT IS THE NET TAXABLE IN 2021 1,100,000 1,000,000 100,000 Zero
Stewart Holdings Ltd. is a Canadian controlled private corporation (CCPC) that has a fiscal period of November 1 to October 31. Stewart Holdings Ltd. has taxable income of $275,000 in the current year and has a policy of always claiming the small business deduction on its tax return each year. Mr. Steve Stewart is the sole shareholder of Stewart Holdings Ltd. Steve has not been too involved in the preparation of the corporate income tax returns in the past neither is aware of the rules under the Income Tax Act, so he has several questions for you about the administrative requirements for income tax purposes for his corporation, Stewart Holdings Ltd. A few weeks after filing the corporation’s tax return, Mr. Stewart receives a Notice of Assessment from Canada Revenue Agency that indicates that changes were made to the current year’s tax return for Stewart Holdings Ltd. Mr. Stewart does not agree with the changes made by Canada Revenue Agency and would like to dispute the matter.…
XY is a domestic corporation in the philippines. The corporation started operating year 2017. The taxable period is 2021 year gross income deductions net 2017 5,000,000 6,000,000 -1,000,000 2018 6,000,000 5,500,00 500,000 2019 6,000,000 4,000,000 2,000,000 2020 3,000,000 4,000,000 -1,000,000 2021 5,000,000 3,900,000 1,100,000 2022 5,000,000 4,000,000 1,000,000 HOW MUCH IS THE CORPORATE INCOME TAX THAT SHOULD BE PAID IN 2021 275,000 50,000 25,000 20,000 Zero HOW MUCH IS THE CORPORATE INCOME TAX THAT SHOULD BE PAID IN 2022 50,000 110,000 170,000 200,000
Is if nation in which the nonresident foreign corporation is domiciled permits a credit for taxes presumed paid in the Philippines equivalent to 15%, dividend received from a domestic corporation by a nonresident foreign corporation shall be subject to a final tax of 15%. False or True
Axtell Corporation has the following taxable income: U.S. source income Foreign source income: Country A Country B Country C Taxable income $ 1,620,000 550,000 2,000,000 2,900,000 $ 7,070,000 Axtell paid $600,000 income tax to Country B and $1.3 million income tax to Country C. Country A does not have a corporate income tax. Required: Compute Axtell's U.S. income tax, assuming the foreign source income does not qualify as FDII. Note: Do not round any intermediate calculations. Enter your answer in dollars and not in millions of dollars. U.S. income tax