Reference no: EM132610775

Steven Co. is a public Canadian corporation which was established five years ago. The company's head office is located in Saskatchewan. In 2018, a small branch was established in Manitoba.

In 2019, the company's books included the following:

Sales in Saskatchewan $5,000,000

Sales in Manitoba $1,000,000

Total labour costs of the company $2,000,000

Labour costs paid in Saskatchewan $1,500,000

Wages at the Manitoba branch $500,000

Income from operations in Saskatchewan $550,000

Income from operations in Manitoba $100,000

Dividend received from a taxable Canadian corporation $50,000

Required:

Question A) Calculate the company's net income for tax purposes for 2019.

Question B) Calculate the company's taxable income, both federal and provincial. (Round all amounts to two decimal places.)

Question C) Calculate Steven Co.'s Part I federal tax liability. (Round all numbers to zero decimal points.)

(Use tax rates and amounts applicable for 2019 for each of the above.)