If the expansion is done through a separate subsidiary, what is the tax for the Saskatchewan operation?
A)$0
B)$2,750
C)$3,000
D)$5,750

Question

Quizplus · Accepted Answer

If the expansion is done through a separate subsidiary, the tax for the Saskatchewan operation would be $2,750 based on the information given in the question. This is because the subsidiary would be subject to the 5% provincial tax on its profits of $55,000 ($1,100,000 x 5%) in addition to the $250 annual registration fee for a corporation in Saskatchewan.

If the Expansion Is Done Through a Separate Subsidiary, What