Largely Small Inc. is a CCPC. For the taxation year ending December 31, 2023, its net income
Question:
Largely Small Inc. is a CCPC. For the taxation year ending December 31, 2023, its net income is $1,233,000, of which $1,197,000 is Canadian active business income and $36,000 is foreign source non-business income. Foreign income tax of 15%, or $5,400, was withheld. The foreign non-business income tax credit under ITA 126(1) is equal to $5,400. The corporation's only deduction in the calculation of taxable income is for a 2022 non-capital loss of $914,000. The corporation's TCEC was $21,300,000 for the taxation year ending December 31, 2022, and $21,600,000 for the current year ending December 31, 2023. The corporation's AAII for 2022 was nil. The corporation has never been associated with any other corporation.
Determine the amount of Largely Small Inc.'s SBD for the 2023 taxation year.
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
8th edition
Authors: Hilton Murray, Herauf Darrell