Rainbow Co. is a Canadian controlled private corporation with active business income of $365,000 in 2020....

 

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Rainbow Co. is a Canadian controlled private corporation with active business income of $365,000 in 2020. The company engages in retail and wholesale activities. Capital gains recognized by the company in 2020 totaled $85,000. Required: Calculate Rainbow Companies Part I Federal Tax for 2020 given the following additional information: Business income Taxable capital gain ($35,000 X.5) Net Income for Tax Purposes Taxable Income $365,000 42,500 $407,500 $407,500 Rainbow Co. is a Canadian controlled private corporation with active business income of $365,000 in 2020. The company engages in retail and wholesale activities. Capital gains recognized by the company in 2020 totaled $85,000. Required: Calculate Rainbow Companies Part I Federal Tax for 2020 given the following additional information: Business income Taxable capital gain ($35,000 X.5) Net Income for Tax Purposes Taxable Income $365,000 42,500 $407,500 $407,500