Which one of the following amounts represents the maximum amount of income on which CCT may claim the small business deduction?
Caribbean Cruise Tours (CCT) is a Canadian controlled private corporation that operates a chain of travel agencies. In its fiscal year ending December 31, 2019, the Company had the following financial results:
Active business income earned in Canada $275,000
Active business income earned outside Canada 25,000
Taxable
Adjusted Aggregate Investment Income 100,000
Net Income For Tax Purposes $400,000
Taxable Income $325,000
The company paid no foreign taxes on its foreign operations. Its Adjusted Aggregate Investment Income was $48,000 in 2018. CCT has no associated corporations.
Which one of the following amounts represents the maximum amount of income on which CCT may claim the small business deduction?
A. $275,000.
B. $300,000.
C. $325,000.
D. $250,000.
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