217.31. For the purpose of determining a corporation’s qualifying transitional income, the income or loss of a partnership for a fiscal period must be computed as if(a) the partnership had deducted for the fiscal period the maximum amount deductible in respect of any expense, reserve or other amount;
(b) this Act were read without reference to subparagraph b of the second paragraph of section 194; and
(c) the partnership had made a valid election for the purposes of paragraph a of section 34 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.)).