Infotech is a public company in its first year of business in the information technology industry. It operates out of a plant in Ottawa, Ontario. In 2012, it incurred $2.2 million of scientific research and experimental development expenditures (SR&ED) which qualify for deduction under subsection 37(1) of the Act. The breakdown of these expenses is as follows:

Infotech's federal income tax rate after abatement is 15%. Its taxable income before deducting the $2.2 million claim under section 37 is $3.2 million.
REQUIRED
(A) Compute the maximum investment tax credit available to Infotech in 2012.
(B) Compute the company's net federal Part I tax payable after the investment tax credit, assuming a maximum section 37 deductions is claimed.
(C) What is the amount, if any, of the investment tax credit carryover?
(D) Compute the company's deduction or income inclusion in the following year if no further SR&ED expenditures are made.

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Capital SR&ED expenditures $300,000 200,000500,000