Question: Need answer for this question TABLE 2.7 Substantively enacted income tax rates for income earned by a CCPCa for 2020 and beyond-as at June 30,

Need answer for this question

TABLE 2.7 Substantively enacted income tax rates for income earned by a CCPCa for 2020 and beyond-as at June 30, 2020 Small Business Income Active Business Income 2020 2021 and Beyond 2020 2021 and Beyond Federal rates General corporate rate 38.0% 38.0% 38.0% 38.0% Federal abatement (10.0) (10.0) (10.0) (10.0) 28.0 28.0 28.0 28.0 Small business deduction (19.0) (19.0) 0.0 0.0 Rate reduction 0.0 0.0 (13.0) (13.0) 9.0 9.0 15.0 15.0 Provincial rates British Columbia 2.0% 2.0% 12.0% 12.0% Alberta 2.0 2.0 10.0 9.0/8.0 Saskatchewan 2.0 2.0 12.0 12.0 Manitoba 0.0 0.0 12.0 12.0 Ontario 3.2 3.2 11.5 11.5 Quebec 5.0 4.0 11.5 11.5 New Brunswick 2.5 2.5 14.0 14.0 Nova Scotia 3.0/2.5 2.5 16.0/14.0 14.0 Prince Edward Island 3.0 3.0 16.0 16.0 Newfoundland and Labrador 3.0 3.0 15.0 15.0M&P Investment Incomeb Income 2020 2021 and Beyond 2020 2021 and Beyond Federal rates General corporate rate 38.0% 38.0% 38.0% 38.0% Federal abatement (10.0) (10.0) (10.0) (10.0) 28.0 28.0 28.0 28.0 M&P deduction (13.0) (13.0) 0.0 0.0 Refundable Tax 0.0 0.0 10.7 10.7 15.0 15.0 38.7 38.7 Provincial rates British Columbia 12.0% 12.0% 12.0% 12.0% Alberta 10.0 9.0/8.0 10.0 9.0/8.0 Saskatchewan 10.0 10.0 12.0 12.0 Manitoba 12.0 12.0 12.0 12.0 Ontario 10.0 10.0 11.5 11.5 Quebec 11.5 11.5 11.5 11.5 New Brunswick 14.0 14.0 14.0 14.0 Nova Scotia 16.0/14.0 14.0 16.0/14.0 14.0 Prince Edward Island 16.0 16.0 16.0 16.0 Newfoundland and Labrador 15.0 15.0 15.0 15.018. Marginal versus Average Tax Rates (LO4) (Refer to (5 Table 2.7) In 2021, Alberta-based Corporation Growth has $88,000 in taxable income, and Alberta-based Corporation Income has $8,800,000 in taxable income. a. What is the tax bill for each? b. Suppose both firms have identified a new project that will increase taxable income by $10,000. How much additional taxes will each firm pay? Is this amount the same? If not, why

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