Needed help to do part A and B to check. Thank you in advance!

Required: Show all of the calculations used to provide the following required information, 7. Falko's active business income for the year was $796,400, which includes $427,000 of including those for which the result is nil. Canadian manufacturing profits that qualify for the M&P deduction (ITA 125.1). Since the A. Determine Fancom's Part I Tax Payable for the year ending December 31, 2020. company operates in a province that provides a special rate for M&P profits, the company calculates the federal M&P deduction every year. B. Determine the refundable portion of Fancom's Part I Tax Payable for 2020. 8. During the year ending December 31, 2020, the company used its existing cash resources C. Determine Fancom's Part IV Tax Payable for the 2020. to pay taxable dividends of $285,000. It is the policy of the company to only designate divi- D. Determine the December 31, 2020, balance in Fancom's GRIP. dends as eligible to the extent they generate a dividend refund. E. Determine the December 31, 2020, balances in Fancom's Eligible RDTOH and Non-Eligible 9. At December 31, 2019, Falko had an eligible RDTOH balance of $19,446, a non- RDTOH. eligible RDTOH balance of $73,670, and a GRIP balance of $24,000. During 2019, Falko Determine Fancom's dividend refund for 2020, separately identifying the refund related to paid taxable dividends of $118,800, $18,800 of which were designated as eligible. As a result of paying the dividends, Falko received a dividend refund of $45,540 [(38-1/3%) eligible dividends and the refund related to non-eligible dividends. ($118,800)]; $7,207 of the dividend refund [($18,800)(38/1/3%)] was attributable to the eligible RDTOH and the remainder of $38,333 [($100,000)(38/1/3%)] was attributable to Assignment Problem Thirteen - 7 its non-eligible RDTOH. (Comprehensive Corporate Tax Payable) Falko Lid. is a Canadian controlled private corporation with a December 31 year end. For its year 10. The combined Adjusted Aggregate Investment Income for the two associated corporations ending December 31, 2020, its accounting Net Income Before Taxes, as determined using gen- for the 2019 year is $47,190 and will be $62,770 for 2020. The Taxable Capital Employed in Canada of the two associated corporations totals $6,445,000 for the 2019 year and will equal erally accepted accounting principles, was $1,029,700. Relevant information for the 2020 year $10,960,000 for 2020. necessary to make the appropriate reconciliation adjustments to Net Income For Tax Purposes, Taxable Income, and federal Taxes payable is as follows. 11. Falko has a 2016 non-capital loss carry forward balance of $112,000 and a 2018 net capital loss carry forward balance of $16,930. Falko's management has indicated that 1. Falko's amortization expense was $494,500. Maximum deductible CCA for the year was they wish to deduct the maximum amount of these losses possible for its 2020 taxa- $713,000. Company policy has always been to deduct the maximum available CCA tion year. . The company's revenues included foreign source investment income of C$44,000. The amount 12. Falko and its wholly owned subsidiary Lands have agreed to split the small business limit received, however, was only C$36,080 as a result of foreign withholding income taxes of 18 50-50 for the 2020 taxation year. percent, or $7,920. The company only recorded the amount received as revenue. 3. Falko sold one of its buildings that required costly renovations in favour of leasing a building. Required: Show all of the calculations used to provide the following required information, The total sales price was $1,725,000 with $500,000 allocated to the land and $1,225,000 to including those for which the result is nil. the building. The original cost of the land and therefore its adjusted cost base was $650,000. A. Calculate Falko's minimum Net Income For Tax Purposes and Taxable Income for the year The capital cost and adjusted cost base of the building was $1,000,000 and its UCC at the ending December 31, 2020. time of sale was $885,000. For accounting purposes the net book value of the building was $710,000. The company records accounting gains and accounting losses based on the net B. Assume the foreign non-business tax credit is equal to the foreign tax withheld. Calculate book value for the building and the original cost of the land. Falko's Part I Tax Payable for the year ending December 31, 2020. As the corporation oper- ates in a province that has a reduced rate for M&P activity, a separate calculation of the During the year, the company earned the following amounts of Canadian source investment federal M&P deduction is required. income, all of which have been included in net income for accounting purposes: C. Calculate the refundable portion of Falko's Part I Tax Payable for 2020 Interest On Long Term Investments $28,700 Non-Eligible Dividends From A 100% Owned Subsidiary D. Calculate Falko's Part IV Tax Payable for the year ending December 31, 2020. 77,500 Eligible Dividends On Bank of Nova Scotia Shares 53,300 E. Determine the December 31, 2020, balance in Falko's GRIP account. 5. Falko is only associated with one company - its wholly owned subsidiary Lands Inc. after Determine the December 31, 2020, balances in Falko's Eligible RDTOH and the Non-Eligible acquiring all of its shares in 2016. Lands received a dividend refund of $26,475 as a result RDTOH. of the dividends paid to Falko in 2020. Since Lands' non-eligible RDTOH was insufficient G. Calculate Falko's dividend refund for the year ending December 31, 2020, showing to recover all of the dividend refund it was forced to partially rely upon its eligible RDTOH. separately the amount attributable to eligible dividends and the amount attributable to non- Lands' GRIP account balance was nil at year end, preventing it from designating any of the dividends paid to Falko as eligible. Of the dividend refund, 43 percent was attributable to its eligible dividends. eligible RDTOH and 57 percent to its non-eligible RDTOH. . Company expenses for accounting purposes included (1) $39,800 spent on business meals Assignment Problem Thirteen - 8 and entertainment; (2) a write-down of inventory (for obsolescence) beyond that permitted (Comprehensive Tax Payable) in valuing inventory for tax purposes; the excess amount is $11,400; (3) life insurance Industco Inc. is a Canadian controlled private corporation. It uses a taxation year that ends on premiums totaling $14,375 paid on the life of two of the principal shareholders; and December 31. It keeps its records in accordance with generally accepted accounting principles. (4) bonuses to the same two shareholders for $75,000 each. The bonuses were never paid