XXXCo. is a Canadian controlled private corporation with active business income of $750,000 in 2019....
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XXXCo. is a Canadian controlled private corporation with active business income of $750,000 in 2019. Dividends were received during 2019 from a taxable Canadian corporation in the amount of $80,000. The company recognized a $50,000 capital gain during 2019. The company's year-end is December 31st. Additional information is as follows: Net capital loss carry-over from 2018 is $30,000. Non capital loss carry-over from 2018 is $70,000.
Required: Calculate the following for the company for the 2018 tax year: A) Net income for tax purposes B) Taxable income C) Part I Federal tax (Use tax rates and amounts applicable for 2019 for each of the above.)
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