What is the tax liability for a small Canadian-controlled private corporation (CCPC) located in British Columbia having earnings before taxes (EBT) of $480,000? The relevant combined federal and provincial corporate income tax rate is 13.5% for taxable income up to $400,000 and 26.5 for the amount exceeding $400,000.

Question

Quizplus · Accepted Answer

The tax liability for a CCPC located in British Columbia with an EBT of $480,000 would be calculated as follows:

Tax on first $400,000 = $400,000 x 13.5% = $54,000
Tax on remaining $80,000 = $80,000 x 26.5% = $21,200
Total tax liability = $54,000 + $21,200 = $75,200

Therefore, the correct answer is B) $75,200.

What Is the Tax Liability for a Small Canadian-Controlled Private