For the taxation year, Cornish Inc., a CCPC has net income of $ This is made up of
$ of active business income earned in Canada and $ of taxable dividends from various
Canadian public companies. It has been determined that $ of the active business income qualifies
as M&P profits.
In the company makes charitable donations to registered charities totalling $
At the beginning of the company has a noncapital loss balance of $ It intends to claim
all of this balance in the taxation year.
Cornish Inc. is associated with three CCPCs The companies have agreed that each will claim onequarter
of the annual business limit The combined TCEC of the four associated companies is less than $ million
in both the and taxation years. The combined AAll of the four companies was $ in
and $ in
Required
Determine the minimum taxable income and federal income tax payable for
Cornish Inc. Show all calculations regardless if they are necessary to the final
solution. As the corporation operates in a province that has a reduced tax rate
for M&P activity, a separate calculation of the federal M&P deduction is required.
