FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Linda, a resident of Canada, owns 100 % of the common shares of both Windsor Retail Ltd. (“WRL”) and Yellowknife Klosets Ltd. (“YKL”). Both corporations have a August 31 year- end.
“YKL” had BOTH active business income AND taxable income of $ 24,000 for its 2020
The following information pertains to “WRL” for its 2020 taxation year:
Division B net income for tax purposes $ 210,000
• Net taxable
• Charitable donation contributions 5,000
? Dividends from taxable Canadian corporations 18,000
The small business deduction for “WRL” for 2020 should be:
- $ 39,900
- $ 35,530
- $ 34,200
- $ 37,620
- None of the above
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