Determine the type of business income being earned by each of the following Canadian-controlled private corporations. Income tax reference: ITA 125(7), 129(6).
a) Corporation A earns interest and dividends from numerous Canadian corporations. Corporation A employs three full-time employees.
b) Corporation B earns rental income from leasing automobiles.
c) Corporation C carries on a wholesaling business. In the current year Corporation C earned interest income on overdue accounts receivable in addition to income from the wholesaling business.
d) Corporation D earns interest income from numerous sources. Corporation D employs 10 full-time employees.
e) Corporation E earns consulting income from services provided to X Ltd. Eddy is the sole shareholder and the only employee of E Ltd. Eddy was previously employed by X Ltd. as VP operations.
f) Corporation F provides consulting services to several clients. Fred is the sole shareholder and only employee of Corporation F.
g) Corporation G earns interest income on a loan to an associated corporation that carries on an active business.
The interest was deducted in computing the active business income of the associated corporation.