Below are the combined federal and provincial taxes payable for Drummond Corp (a small eligible CCPC with income less than 500k) for the previous three years. 

 

2018 - $152,000
2019 - $189,000
2020 - $171,000 (estimated)

 

Required:
A) Discuss if instalments for 2020 will be required, if so, how often?
B) Calculate the total and periodic installments under each acceptable option.
C) What option should Drummond Corp select if they’d like to minimize instalments?

Answer rating: 100% (QA)

A Drummond Corp will be required to make instalments for 2020 The instalments will b... View the full answer