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 20x8 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 20x8 tax year: