Fredericton Corp. earned $60,000 in foreign business income…
Fredericton Corp. earned $60,000 in foreign business income in the current taxation year and foreign income tax of $7,500 was paid on this income. Fredericton Corp. has correctly calculated its federal income tax payable before the foreign business income tax credit as $15,250, calculated as follows: Base Amount of tax $48,000 Federal Abatement (12,000) SBD (19,250) GRR (1,500) Federal Income Tax before Foreign Business Tax Credit $15,250 What is the amount of Tax Otherwise Payable for purposes of the foreign business income tax credit calculation?
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