Problem 5 Calculation of Taxable Income / Tax Payable - Corporation For the taxation year ending

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Problem 5 – Calculation of Taxable Income / Tax Payable - Corporation

For the taxation year ending December 31, 2020, JEAB Ltd. has a Net Income For Tax Purposes of $792,400. This consists of $746,300 of Canadian active business income, and $46,100 of dividends received from various Canadian public companies. At the beginning of the 2020 taxation year, JEAB has a $123,450 non-capital loss carry over. Management intends to deduct the maximum amount of this carry forward during the 2020 taxation year. During the 2020 taxation year, the Company makes contributions to registered charities $102,600. JEAB Ltd. is a Canadian controlled private corporation that has a December 31 taxation year end. It is associated with one other company. Based on their agreement with this company, JEAB’s share of the annual business limit is $200,000.

REQUIRED. Determine the minimum taxable income and Part I federal tax payable for JEAB Ltd. for the year ending December 31, 2020. Show all calculations.