Balaclava Giant started operations this year and had a net income for tax purposes of $900,000. (Balaclava Giant operates in a province that has a provincial tax reduction on income earned from manufacturing and processing.)
During the year, Balaclava Giant:
a) made a contribution of $45,000 to eligible charities;
b) received $50,000 in dividends from taxable Canadian corporations;
c) had an active business income of $670,000.
For tax purposes, Balaclava Giant is associated with Mission Takers Inc. used $120,000 of the small business deduction for its active business income.
Required:

Calculate the following, ignoring provincial taxes:
a) Balaclava Giant's taxable income
b) Balaclava Giant's small business deduction (use 19% as the rate)

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