Recapture cca note sale land note
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The company also has the following balances at January 1, 2020:
2)Interest was earned on Account receivable outstanding
3)The capital gains and recapture was a result of selling some of BLACK’s old machinery
of $6,000 by the subsidiary as a result of paying out its dividend.
8)Note that no dividend refunds were received for the 2019 for eligible
| Location | Gross revenue | |
|---|---|---|
| Alberta | ($000s) | |
| 2,450 |
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| Ontario | 2,600 |
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| U.S. | 850 | |
| Totals | 5,900 |
(A) You have been hired by Black Ltd. to review the given information
and to compute the federal Part I tax and provincial tax at a 15% rate
on federal taxable income for the 2020 taxation year. Show in detail the
calculation of all deductions in the computation, using a separate
schedule for each special deduction. In calculating the small business
deduction list all ineligible items of income, if any, and indicate the
amount of the business limit available for the
subsidiary.
(B) Compute the dividend refund for 2020 and the amount of any RDTOH to be carried forward.