Chartered Tours Inc.(CTI)started operations this year and had a net income for tax purposes of $800,000.(Chartered Tours Inc.operates in a province which has a provincial tax reduction on income earned from manufacturing and processing.)
CTI also:
a)made a contribution of $25,000 to eligible charities;
b)received $30,000 in dividends from taxable Canadian corporations;
c)recognized manufacturing and processing profits of $250,000;
d)had active business income of $770,000; and
e)did not receive any taxable dividends from other corporations,or pay out any taxable dividends in the previous year.
For tax purposes,CTI is associated with Rocky Mountain Hikers Inc.(RMHI).RMHI was able to use $310,000 of the small business deduction.
Required:
Calculate the following,ignoring provincial taxes:
a)CTI's taxable income
b)CTI's small business deduction
c)The M & P deduction available to CTI
d)CIT's general rate reduction
e)The balance in CTI's GRIP account at the end of the year

Question

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The Answer of Chartered Tours Inc.(CTI)started operations this year and had a net income for tax purposes of $800,000.(Chartered Tours Inc.operates in a province which has a provincial tax reduction on income earned from manufacturing and processing.)
CTI also:
a)made a contribution of $25,000 to eligible charities;
b)received $30,000 in dividends from taxable Canadian corporations;
c)recognized manufacturing and processing profits of $250,000;
d)had active business income of $770,000; and
e)did not receive any taxable dividends from other corporations,or pay out any taxable dividends in the previous year.
For tax purposes,CTI is associated with Rocky Mountain Hikers Inc.(RMHI).RMHI was able to use $310,000 of the small business deduction.
Required:
Calculate the following,ignoring provincial taxes:
a)CTI's taxable income
b)CTI's small business deduction
c)The M & P deduction available to CTI
d)CIT's general rate reduction
e)The balance in CTI's GRIP account at the end of the year