Simon Williams Owns 100 Percent of Wonder Technologies Inc

question 141

Multiple Choice

Simon Williams owns 100 percent of Wonder Technologies Inc.Peter Maximoff owns 100 percent of Speedy Delivery Service Ltd.Simon and Peter each own 50 percent of
Scarlet Decorating Ltd.Simon is married to Peter's sister, Wanda.
Assuming each of the three corporations is a CCPC and has at least $500,000 of active business income earned in Canada, what is the maximum combined corporate income on which the three corporations can claim the small business deduction?

• A)Nil.
• B)$ 500,000.
• C)$1,000,000.
• D)$1,500,000.
• PUC And ACB

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Definitions:

Purchase Discount

A deduction from the amount owed by a buyer to a seller, granted for paying an invoice early.

Early Payment Discount

This is a reduction in the invoice amount offered by a seller to a buyer in return for paying the bill before the scheduled due date.

Sales Discount

A reduction in the price of a product or service that is offered to customers, typically to encourage early payment of invoices or to incentivize bulk purchases.

FOB Destination

A shipping term indicating that the seller bears shipping costs and retains ownership of goods until they are delivered to the buyer's location.