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Summary QuestionAutoParts Inc. is a CCPC located in Saint John, New Brunswick that distributes aut $7.99   Add to cart

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Summary QuestionAutoParts Inc. is a CCPC located in Saint John, New Brunswick that distributes aut

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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...

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  • October 6, 2024
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  • 2024
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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.




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