AutoParts In1QuestionAutoParts Inc. is a CCPC located in Saint John, New Brunswick that distributes automotive parts in the Maritime Provinces. For the year ended December 31, 2024, their Division B income was $708,500, all of which are from active business income. Their taxable capital is $20 mill...
AutoParts Inc. is a CCPC located in Saint John, New Brunswick that distributes
automotive parts in the Maritime Provinces. For the year ended December 31,
2024, their Division B income was $708,500, all of which are from active
business income. Their taxable capital is $20 million. In 2023, AutoParts Inc.
accumulated $58,500 of non-capital losses to be carried forward to 2024. Due to
their losses, they were unable to deduct $10,000 of charitable donations in 2023.
The owner of AutoParts Inc. also owns 100% of TravelWire Inc. Travelwire Inc.
reported a total of $60,000 of adjusted aggregate investment income in the
current and prior year. They used $120,000 of their small business deduction
limit. Their taxable capital is $2 million. Assume that the provincial corporate
tax rate is 4% on income eligible for the small business deduction, and 12% for
all other income. REQUIRED: Calculate the total tax payable, including
provincial taxes, for AutoParts Inc. in the year 2024.
Answer & Explanation
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