Wow. you are right. I should have looked at the example, it did say, AAII in the preceding year. Thanks for the clarification.
A CCPC’s passive income business limit reduction for a particular taxation year will be the amount determined by the formula:
BL/$500,000 x 5 (AAII - $50,000)
where
BL is the CCPC’s business limit otherwise determined for the particular year (i.e., its business limit as described above); and
AAII is the total of all amounts each of which is the adjusted aggregate investment income of the CCPC, or of any corporations with which it is associated at any time in the particular year, for each of their taxation years that ended in the preceding calendar year.