MML Inc. a CCPC provides you this year's income tax related information : Active Business Income Investment
Question:
MML Inc. a CCPC provides you this year's income tax related information:
Active Business Income
Investment Income
Dividends Income "non-connected"
Dividends Income"connected"
CDN ABI Income
$500,000
Foreign Non- Business Income, before Tax.
(Foreign Tax Paid: $25,000)
$100,000
Cdn Interest Income
$20,000
CDN Dividend Income
$50,000
CDN Dividend Income
(50% Ownership; dividend refund received by subsidiary was $20,000)
$10,000
Taxable Capital Gain
$100,000
For Taxable Capital Employed purposes, you are given the following information from MML balance sheet:
Current Assets - $20,000,000
Investment in subidary, Company Z - $1,000,000
Fixed Assets _ $6,000,000
Accounts Payable Trade - $5,000,000
Long Term Mortgages - $13,000,000
Equity - $9,000,000
- MML had a carry forward of $50,000 of Charitable Donations from 2018.
- MML has an Allowable Capital Loss of $10,000 from 2009.
- This year, MML paid $90,000 dividends to its shareholder.
- Assume on amounts are non-eligible.
Calculate this year's Taxable Capital?
Business Essentials
ISBN: 978-0134000091
8th Canadian Edition
Authors: Ronald J. Ebert, Ricky W. Griffin, Frederick A. Starke, George Dracopoulos