Deckton ltd. Is a largest successful Canadian controlled private corporation (CCPC) operating in multiple jurisdictions through permanent establishments in which carriers on the business of renovating residential homes. In 2020 Deckton’s percentage of gross revenues and wages and salaries in each of the 4 jurisdictions in which they operate is as follows:

Province                     Revenues                              wages                  averages

Alberta                             41%                                  48%                     44.5%

British Columbia            20%                                   23%                     21.15%

Saskatchewan                 28%                                    22%                    25.0%

U.S Washington state    11%                                    7%                     9.0%

Total                               100%                                  100%                  100%

Deckton’s   taxable income for 2020, which consists exclusively of active business incomes, is $2,447,000. Its Canadian operations accounts for $2,073,000 of its taxable income with the remainder of $374,000 attributable to its U.S operations. The U.S operations paid business and profits taxes in the amount of C $71,160

Deckton Ltd. Represents the western Canadian operations of a corporater group composed of 3 companies , all of which are associated. Deckton is allocated $200,000 of the business limit of the associated group for 2020. The 3 companies all have been associated for over 10 yeas.

All of the gross revenues of the 3 associated companies are derived from arm’s length sales and there are no intercompany sales between them.

The combined Adjusted Aggregate Investment Income (Adjusted All) of the associated group of companies is less than $50,000 in both 2019 and 2020

The Taxable Capital Employed in Canada (TCEC) of the associated group in 2019 was $14,125,000 and was $13,754,000 in 2020.

Assume that Desckton’s foreign tax credit is equal to the foreign taxes paid of $71,060

DETERMINE DECKTON’S MINIMUM FEDERAL PART 1 TAX PAYABLE FOR THE YEAR ENDING DECEMBER 31,2020 .SHOW ALL SUPPORTING CALCULATIONS.

Answer rating: 100% (QA)

The minimum federal tax payable ie PART I by Deckon Ltd is 171390 for the Dec 31 2020 yearend St... View the full answer