Up, Up and Away Limited is a public corporation that distributes hot air balloons in the Province of New Brunswick. For the year ended September 30, 2012, its accounting income statement was as follows:
Sales................................................................................... $1,225,000
Cost of sales and other expenses including CCA ................................ (725,000)
Operating profit ...................................................................... $ 500,000
Other net income ....................................................................... 198,500
Net income before taxes ............................................................ $ 698,500
Provision for taxes ................................................................... (200,725)
Net income ........................................................................... $ 497,775
Selected Additional Information
(1) Other income includes:
Dividends from taxable Canadian corporation ....................................... $ 85,000
Canadian interest income .................................................................. 52,500
Foreign interest income, net of withholding taxes of $10,000 ........................ 61,000
(2) Up, Up and Away Limited has a non-capital loss carry forward of $255,545.
(3) Up, Up and Away Limited purchased qualified equipment costing $250,000 which is eligible for the investment tax credit.
(4) Donations to registered charities were $9,755 (deducted from accounting income).
REQUIRED
Calculate the total taxes payable for 2012 using an 11% provincial rate of tax.