question archive Sponge Todd Square Corp (STSC) is a corporation resident in Canada that has asked you to prepare a calculation of their corporate Part I taxes owing for the 2018 taxation year
Sponge Todd Square Corp (STSC) is a corporation resident in Canada that has asked you to prepare a calculation of their corporate Part I taxes owing for the 2018 taxation year
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Sponge Todd Square Corp (STSC) is a corporation resident in Canada that has asked you to prepare a calculation of their corporate Part I taxes owing for the 2018 taxation year. They have calculated their taxable income as follows: Active business income - Interest Income (passive) - Foreign income - Losses carried forward Taxable Income $650,000 $70,000 $80,000 (100,000) $700,000 STSC is associated with another corporation. The other corporation has already used $150,000 of the small business deduction limit. Please show all your work.
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Answer :
STSC
Income from Active Business - $6,50,000 : Interest Income ( Passive ) - $70,000 : Foreign Income - $ 80,000 : Losses from Previous Year - $1,00,000
Also, the company claimed small business deduction limit. So tax rate is 10%
Tax = $7,00,000 * 10% = $70,000
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