Margaret Lykaios is the president and major shareholder of Measureup Ltd., a Canadian-controlled private corporation that operates a construction business in Regina, Saskatchewan. Measureup earns only business income which is all subject to the small business deduction.
In 2023, she had a number of financial transactions. She has asked you to help her prepare her 2023 tax return and provide advice on other tax matters. The following additional financial information is provided for 2023:
In addition to her salary, Measureup paid $2,000 to a deferred profit-sharing plan, $600 of private health insurance premiums, and $400 of group sickness and accident insurance premiums.
Required:Determine Margaret’s net income for tax purposes in accordance with the aggregating formula of Section 3 of the Income Tax Act for 2023. Assume other deductions total $8,000.