The Honeymoon Co.is a Canadian controlled private corporation with active business income of $750,000 in 2020.Dividends were received during 2020 from a taxable Canadian corporation in the amount of $80,000.The company recognized a $50,000 capital gain during 2020.The company's year-end is December 31^st.
Additional information is as follows:
Net capital loss carry-over from 2019 is $30,000.
Non capital loss carry-over from 2019 is $70,000.
Required:
Calculate the following for the company for the 2020 tax year:
A.Net income for tax purposes
B.Taxable income
C.Part I Federal Tax - Identify amounts for 1) basic federal tax, 2) federal abatement, 3) refundable tax on investment income, 4) small business deduction, 5) general rate reduction), and 6) the total federal tax.

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The Answer of The Honeymoon Co.is a Canadian controlled private corporation with active business income of $750,000 in 2020.Dividends were received during 2020 from a taxable Canadian corporation in the amount of $80,000.The company recognized a $50,000 capital gain during 2020.The company's year-end is December 31^st. Additional information is as follows: Net capital loss carry-over from 2019 is $30,000. Non capital loss carry-over from 2019 is $70,000. Required: Calculate the following for the company for the 2020 tax year: A.Net income for tax purposes B.Taxable income C.Part I Federal Tax - Identify amounts for 1) basic federal tax, 2) federal abatement, 3) refundable tax on investment income, 4) small business deduction, 5) general rate reduction), and 6) the total federal tax.