Aspen Digital Ltd. and Birch Systems Ltd. are associated Can…
Aspen Digital Ltd. and Birch Systems Ltd. are associated Canadian-controlled private corporations. For the current taxation year: • The associated group has a $500,000 business limit available for allocation. • The corporations allocate $320,000 of the business limit to Aspen Digital Ltd. • Aspen earns $410,000 of active business income carried on in Canada. • Aspen has taxable income of $365,000 before claiming the small business deduction. • As a result of the applicable business-limit grind, Aspen’s allocated business limit is reduced by $40,000. What is the maximum amount of Aspen Digital Ltd.’s income that may qualify for the small business deduction?