Lax Inc. is a Canadian controlled private corporation. For the fiscal year ending December 31, 2020, its Net Income For Tax Purposes and Taxable Income is made up of active business income of $285,000, plus Adjusted Aggregate Investment Income of $95,000. For 2019, its Adjusted Aggregate Investment Income was $75,000. Its Taxable Capital Employed In Canada was $7 million for 2020 and $6 million for 2019. Because of its association with Slax Inc., its 2020 allocation of the annual business limit is $200,000. Slax's Taxable Capital Employed In Canada was $1,000,000 for 2020 and for 2019. It has no Adjusted Aggregate Investment Income in either year.
Determine the amount of the 2020 small business deduction for Lax Inc.

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The Answer of Lax Inc. is a Canadian controlled private corporation. For the fiscal year ending December 31, 2020, its Net Income For Tax Purposes and Taxable Income is made up of active business income of $285,000, plus Adjusted Aggregate Investment Income of $95,000. For 2019, its Adjusted Aggregate Investment Income was $75,000. Its Taxable Capital Employed In Canada was $7 million for 2020 and $6 million for 2019. Because of its association with Slax Inc., its 2020 allocation of the annual business limit is $200,000. Slax's Taxable Capital Employed In Canada was $1,000,000 for 2020 and for 2019. It has no Adjusted Aggregate Investment Income in either year.
Determine the amount of the 2020 small business deduction for Lax Inc.

Lax Inc Is a Canadian Controlled Private Corporation