Sales in Province 1: $6,800,000 Sales in Province 2: $1,200,000 Total labour costs of the company: $2,000,000 Labour costs in Province 1: $1,500,000 Labour costs in Province 2: $500,000 Income from operations in Province 1: $550,000 Income from operations in Province 2: $100,000 Dividends received from a taxable Canadian corporation: $50,000 What is Band Inc.'s taxable income in Province 1?
Sales in Province 1: $6,800,000 Sales in Province 2: $1,200,000 Total labour costs of the company: $2,000,000 Labour costs in Province 1: $1,500,000 Labour costs in Province 2: $500,000 Income from operations in Province 1: $550,000 Income from operations in Province 2: $100,000 Dividends received from a taxable Canadian corporation: $50,000 What is Band Inc.'s taxable income in Province 1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Band Inc. is a public Canadian corporation which was established five years ago. The company's head office is located in Province 1. A small branch was established in Province 2 last year. The company's books show the following for the current year:
Sales in Province 1: $6,800,000
Sales in Province 2: $1,200,000
Total labour costs of the company: $2,000,000
Labour costs in Province 1: $1,500,000
Labour costs in Province 2: $500,000
Income from operations in Province 1: $550,000
Income from operations in Province 2: $100,000
Dividends received from a taxable Canadian corporation: $50,000
What is Band Inc.'s taxable income in Province 1?
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