Chartered Tours Inc.(CTI)reported a net income for tax purposes of $800,000 in 20xx.(CTI operates in a province which has a provincial tax reduction on income earned from manufacturing and processing.)
During 20xx,CTI:
a)made a contribution of $25,000 to eligible charities;
b)received $30,000 in non-eligible dividends from a connected taxable Canadian corporation;
c)recognized manufacturing and processing profits of $250,000; and
d)had active business income of $770,000.
For tax purposes,CTI is associated with Rocky Mountain Hikers Inc.(RMHI).RMHI used $310,000 of the small business deduction for its active business income in 20xx.
The non-eligible dividends were received from ABC Co.CTI owns 20% of ABC Co.ABC Co.received a dividend refund of $20,000 as a result of paying taxable dividends.
The ending balances in CTI's GRIP and non-eligible RDTOH accounts were nil in the previous year.
(None of the above is subject to rules pertaining to specified corporate income,excessive income from passive investments,or taxable capital in excess of $10 million.)
Required:
Calculate the following federal amounts for 20xx:
a)CTI's taxable income
b)CTI's small business deduction
c)The M & P deduction available to CTI
d)CTI's general rate reduction
e)Part IV tax on non-eligible dividends
f)The balance in CTI's GRIP account at the end of 20xx
Use tax rates and amounts applicable to 2019.

Question

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The Answer of Chartered Tours Inc.(CTI)reported a net income for tax purposes of $800,000 in 20xx.(CTI operates in a province which has a provincial tax reduction on income earned from manufacturing and processing.)
During 20xx,CTI:
a)made a contribution of $25,000 to eligible charities;
b)received $30,000 in non-eligible dividends from a connected taxable Canadian corporation;
c)recognized manufacturing and processing profits of $250,000; and
d)had active business income of $770,000.
For tax purposes,CTI is associated with Rocky Mountain Hikers Inc.(RMHI).RMHI used $310,000 of the small business deduction for its active business income in 20xx.
The non-eligible dividends were received from ABC Co.CTI owns 20% of ABC Co.ABC Co.received a dividend refund of $20,000 as a result of paying taxable dividends.
The ending balances in CTI's GRIP and non-eligible RDTOH accounts were nil in the previous year.
(None of the above is subject to rules pertaining to specified corporate income,excessive income from passive investments,or taxable capital in excess of $10 million.)
Required:
Calculate the following federal amounts for 20xx:
a)CTI's taxable income
b)CTI's small business deduction
c)The M & P deduction available to CTI
d)CTI's general rate reduction
e)Part IV tax on non-eligible dividends
f)The balance in CTI's GRIP account at the end of 20xx
Use tax rates and amounts applicable to 2019.