Bride and Groom Co. is a Canadian controlled private corporation with active business income of $750,000 in 20x9. Dividends were received during 20x9 from a taxable Canadian corporation in the amount of $80,000. The company recognized a $50,000 capital gain during 20x9. The company's year-end is December 31^st.
Additional information is as follows:
Net capital loss carry-over from 20x8 is $30,000.
Non capital loss carry-over from 20x8 is $70,000.
Required:
Calculate the following for the company for the 20x9 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.)

Question

Quizplus · Accepted Answer

The Answer of Bride and Groom Co. is a Canadian controlled private corporation with active business income of $750,000 in 20x9. Dividends were received during 20x9 from a taxable Canadian corporation in the amount of $80,000. The company recognized a $50,000 capital gain during 20x9. The company's year-end is December 31^st. Additional information is as follows: Net capital loss carry-over from 20x8 is $30,000. Non capital loss carry-over from 20x8 is $70,000. Required: Calculate the following for the company for the 20x9 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.)