Band Inc. is a public Canadian corporation which was established five years ago. The company's head office is located in Province 1. A small branch was established in Province 2 last year. The company's books show the following for the current year:

Sales in Province 1: $6,800,000
Sales in Province 2: $1,200,000
Total labour costs of the company: $2,000,000
Labour costs in Province 1: $1,500,000
Labour costs in Province 2: $500,000
Income from operations in Province 1: $550,000
Income from operations in Province 2: $100,000
Dividends received from a taxable Canadian corporation: $50,000

What is Band Inc.'s taxable income in Province 1?

Answer rating: 100% (QA)

To calculate the taxable income in Province 1 we first need to calculate the companys net incom... View the full answer