Quinn's Proprietorship Earned $160,000 in Pre-Tax Profits This Year ACalculate the After-Tax Profits for the Business as I) a Not

Quinn's proprietorship earned $160,000 in pre-tax profits this year.Quinn does not require personal funds from the business.
Personal tax rates (federal plus provincial) in Quinn's province are:
(All rates are assumed for this question.)
The combined federal and provincial rate of tax for Canadian-controlled private corporations in Quinn's province is 13% on the first $500,000 of income.
Quinn has been considering incorporating the business.

Required:
A.Calculate the after-tax profits for the business as i) a proprietorship, and ii) a corporation.Show all calculations.
B.Name the type of tax planning that Quinn would be engaging in if the company was changed from a proprietorship to a corporation.
$\begin{array}{|l|r|}\hline \text { On the first } \$ 49,000 & 20 \% \\\hline \text { On the next } \$ 48,000 & 30 \% \\\hline \text { On the next } \$ 54,000 & 40 \% \\\hline \text { On the next } \$ 63,000 & 45 \% \\\hline \text { On income over } \$ 214,000 & 50 \% \\\hline\end{array}$
A.Calculate the after-tax profits for the business as i) a proprietorship, and ii) a corporation.Show all calculations.
B.Name the type of tax planning that Quinn would be engaging in if the company was changed from a proprietorship to a corporation.
A) After-tax profits as a proprietorship:
$\begin{array}{|l|r|r|}\hline\$ 160,000.00 & & \$ 160,000.00 \\\hline \text { Less Tax: } & & \\\hline 49.000 .00 & \times 20 \% & \$ 9,800.00 \\\hline 48,000.00 & \times 30 \% &\$ 14,400.00 \\\hline \$ 54,000.00 & \times 40 \% & \$ 21,600.00\\\hline\$ 9,000.00 & \times 45 \% &\$ 4,050.00 \\\hline \text { After-tax profits: } & & \$ 110,150.00 \\\hline\end{array}$ After-tax profits as a corporation:
$\begin{array}{|l|r|r|}\hline\$ 160,000.00 & & \$ 160,000.00 \\\hline \text { Less Tax: } && \\\hline \$ 160,000.00 & \times 13 \% & \$ 20,800.00\\\hline \text { After-tax profits: } & & \$ 139,200.00 \\\hline\end{array}$ B) Transferring income from one entity to another (individual to corporation)