Please show step by step solution, and where each calculation is from.

$1.$Required:

From which of the following accounts couuld dividends be paid from income taxed only

at the highest corporate income tax rate $?$

Answer:

a$)$ LRIP

b$)$ GRIA

c$)$ CDA

d$)$ GRIP

e$)$ none of the above

$2.$ Linda, a resident of Canada, owns $100\%$ of the common shares of both Windsor Retail Ltd$.($WRL$)$ and Yellowknife Klosets Ltd$.($YKL$).$ Both corporations have a

September $30$ year$-$ end.

$$YKL$$ had BOTH active business income AND taxable income of $ $44,000$ for its $2021$

taxation year. Barbara has decided to allocate to $$YKL$$ as much of the small business

limit as is needed to maximize the small business deduction for $$YKL$,$ with the

remaining balance of the available annual business limit allocation being made to

$$WRL$.$

Most but not all of $$WRL$$s income is from an active business carried on in Canada.

The following information pertains to $$WRL$$ for its $2021$ taxation year:

$$ Division B net income for tax purposes $ $220,000$

$$ Net taxable capital gains $16,000$

$$ Charitable donation contributions $10,000$

$$ Recapture of CCA on sale of operating business assets $10,000$

Required:

The small business deduction for $$WRL$$ for $2019$ should be:

a$)$ $ $41,800$

b$)$ $ $39,900$

c$)$ $ $30,400$

d$)$ $ $36,860$

e$)$ None of the above

$3.$ Robin Ltd$.$ is a corporation whose business is providing accounting services for a fee to Faith Ltd$.,$ a large, privately owned, arm$$s length corporation. Shari and David are each $50\%$ shareholders of Bobin Lrd$.$ and the only employees of Robin Ltd$.$ Prior to the incorporation of Robin Ltd$.,$ both Shari and David were employed by Faith Ltd$.$ in the accounting department.

Required:

What type of income is Robin Ltd$.$ earning for tax purposes?

a$)$ Active business income

b$)$ Personal property income

c$)$ Specified investment business income

d$)$ Personal services business income

e$)$ None of the above

$4.$Jonathan owns $60\%$ of Carweb.com Ltd$.,70\%$ of Taxman Inc. and $51\%$ of Internet

Housefind Ltd$.$ The remaining shareholders in all three corporations are unrelated

parties. Each of the three companies earns at least $ $500,000$ of active business income.

Required:

What is the maximum amount of combined corporate business income that the three

companies can claim on their corporation income tax returns, based on only the above

information?

a$)$ $ $1,000,000$

b$)$ $ $-0-$

c$)$ $ $500,000$

d$)$ $ $1,500,000$

e$)$ None of the above