With Respect to the Determination of Tax Payable for a Corporation

question 71

Multiple Choice

With respect to the determination of Tax Payable for a corporation, which of the following statements is correct?

• A)Provincial tax is calculated as a percentage of federal Tax Payable.
• B)The general rate reduction percentage is applied to full rate taxable income.
• C)The basic federal tax rate is equal to 28 percent of Taxable Income.
• D)The federal tax abatement is always equal to 10 percent of Taxable Income.

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Definitions:

Contract

A legally binding agreement between two or more parties.

Warranty of Authority

An assurance provided by an agent to a third party that they have the authority to act on behalf of another person or entity in a legal or business transaction.

Breach

The violation or infringement of a law, duty, agreement, or trust.

Authority

denotes the power or right to give orders, make decisions, and enforce obedience.