Newz IncIs a Canadian-Controlled Private Corporation with a December 31 Year-End

Newz Inc.is a Canadian-controlled private corporation with a December 31 year-end and the controller has asked you to prepare the 2020 T2 tax return.The company reported a net income of $200,000 on its financial statements in 2020.Of this amount, $15,000 was from non-eligible dividend income received from a taxable Canadian corporation.The remaining income was from active business.
Additional information:
1) The non-eligible dividends were received from Snappy Ltd., a connected Canadian-controlled private corporation.Snappy has only one class of shares, and the total amount of non-eligible dividends paid in 2020 was $50,000 which resulted in a non-eligible dividend refund of $9,000.
2) Newz had a balance in its non-eligible RDTOH account of $3,000 at the end of 2019.The company did not receive a dividend refund in 2019.
3) Newz is associated with Golden Co.Golden used $220,000 of the small business deduction limit on its 2020 tax return.
4) Newz' 2020 financial net income includes a donation expense of $1,000.
5) Amortization of $30,000 was expensed on Newz income statement in 2020.CCA has been correctly calculated at $28,500 for 2020 and has not been transferred from the tax accounts to the financial statements.Newz utilizes the maximum CCA deduction each year.
6) Newz paid non-eligible dividends totaling $5,000 during 2020.
(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.)
A.Determine Newz's net income for tax purposes.
B.Determine Newz's taxable income.
C.Determine the small-business deduction for Newz.In your answer, identify the values for
1) active business income
2) taxable income
3) annual limit.
D.Calculate Newz's
1) Part IV tax on non-eligible dividends
2) dividend refund from non-eligible RDTOH, if applicable.
(Round all amounts to zero decimal places.Work must be shown for marks to be awarded.)