The following data is for J & J Ltd., a Canadian controlled private corporation. The data is for the taxation year ending December 31, 2020:

 

Canadian Source Active Business Income

Includes $99,000 Of Manufacturing And Processing Profits)             $133,000

Foreign Investment Income (Net Of $1,200 In Withheld Foreign Taxes)           6,800

Net Income For Tax Purposes (Division B Income)                                       141,000

Taxable Income                                                                                               95,000

 

No net capital loss carryforwards were deducted during 2020.

For 2019, the ADJUSTED Aggregate Investment Income of J & J was $17,150. Its Taxable Capital Employed In Canada was $3,350,000 for 2019.

Assume that the tax credit on foreign investment income is equal to the $1,200 in taxes withheld.

 

Required: Calculate the federal Part I Tax Payable for the taxation year ending December 31, 2020. Show all of the calculations used to provide the required information, including those for which the result is nil. Because J & J operates in a province that has a special rate for M&P profits, a separate calculation of the M&P deduction is required. (Hint: Separate notes for SBD, ART, M&P, GRR calculations)