Solved

Band IncIs a Public Canadian Corporation Which Was Established Five Years

Question 10

Essay

Band Inc.is a public Canadian corporation which was established five years ago.The company's head office is located in Saskatchewan.A small branch was established in Manitoba last year.
The company's books show the following for the current year:
 Sales in Saskatchewarn $5,000,000 Sales in Maritoba $1,000,000 Total labour costs of the compary $2,000,000 Labour costs paid in Saskatchewarn $1,500,000 Wages at the Marnitoba branch $500,000 Inconne from operations in Saskatchewarn $550,000 Incorne from operations in Maritoba $100,000 Dividend received from a taxable $50,000 Carnadiarn corporation \begin{array} { | l | r | } \hline \text { Sales in Saskatchewarn } & \$ 5,000,000 \\\hline \text { Sales in Maritoba } & \$ 1,000,000 \\\hline \text { Total labour costs of the compary } & \$ 2,000,000 \\\hline \text { Labour costs paid in Saskatchewarn } & \$ 1,500,000 \\\hline \text { Wages at the Marnitoba branch } & \$ 500,000 \\\hline \text { Inconne from operations in Saskatchewarn } & \$ 550,000 \\\hline \text { Incorne from operations in Maritoba } & \$ 100,000 \\\hline \text { Dividend received from a taxable } & \$ 50,000 \\\text { Carnadiarn corporation } & \\\hline\end{array}
A.Calculate the company's net income for tax purposes for the current year.
B.Calculate the company's taxable income, both federal and provincial.(Round all amounts to two decimal places.)
C.Calculate Band Inc.'s Part I federal tax liability.(Round all amounts to zero decimal points.)
Use rates applicable for 2020.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents