Blue Ltd. is a Canadian corporation owned 100% by Karen Samson. Blue manufactures hockey sticks that are

Question:

Blue Ltd. is a Canadian owned 100% by Karen Samson. Blue manufactures hockey sticks that are marketed to retail sporting goods stores across Canada and Europe. Green Ltd. is a Canadian also owned 100% by Samson. Green operates a retail sporting goods store. It purchases hockey sticks from Blue.
Blue charges $10 a stick to all of its customers in Canada, except Green, which pays only $8 a stick. Each stick costs Blue $4 to manufacture. Last week, Green purchased 1,000 sticks from Blue and sold them to retail customers for $14 each.
Required:
1. With respect to the 1,000 sticks, determine the income for tax purposes of both Blue and Green.
2. How would your answer to question 1 change if Blue charged Green $12 per stick? Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...