Meridian Inc. is a CCPC and is not associated with any other corporation. Meridian has 2022 net income of $422,000. This amount is made up of taxable dividends from taxable Canadian corporations of $22,000, active business income of $380,000, and foreign non-business income of $20,000. The foreign income was subject to a 13% income tax in the foreign jurisdiction. Meridian receives a foreign tax credit against federal income tax payable that is equal to the amount withheld. Meridian has a 2020 non-capital loss balance of $145,000 which it intends to claim in 2022. The TCEC was less than $10 million in 2021 and the AAII was less than $50,000 in 2021. 

Determine Meridian's small business deduction (SBD) for the 2022 taxation year.

Answer rating: 100% (QA)

Calculate the net taxable income This is the amount of income that is subject to tax after all deduc... View the full answer