Apple Inc. is a CCPC with a net income for tax purposes to be $652,000 for the
Question:
Apple Inc. is a CCPC with a net income for tax purposes to be $652,000 for the year ended December 31, 2019. The following additional information is available:
Non-capital loss carry forward $40,000
Eligible portfolio dividends 25,000
Interest income (Canadian) on long-term investments10,000
Accounting gain on disposal of assets 65,000
Taxable capital gain on disposal of assets—
Non-eligible refundable dividend ta on hand(NERDOTH) balance 2500
Eligible refundable dividend tax on hand (ERDOTH) balance 0
Prior year dividend refund from non-eligible dividend payment 2,000
Dividend from wholly owned subsidiary 50,000 dividend refund received by the wholly owned subsidiary from NERDOTH account 4,000 share of annual business limit used by wholly owned subsidiary 200,000 non-eligible dividend paid to shareholders during year 60,000.
a). What is the active business income?
b). aggregate investment income? refundable portion of Part I tax?
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers