A non-Canadian Controlled Private Corporation has a Low Rate Income Pool balance of

$78,000

at the end of the 2019 fiscal year. In 2020, the company wishes to pay a dividend of

$250,000.

During 2020, prior to the payment of the dividend, the company receives eligible dividends of

$35,000

and non-eligible dividends of

$85,000.

How much of the

$250,000

dividend must be paid as a non-eligible dividend before an eligible dividend can be designated?

A.

$113,000

B.

$250,000

C.

$78,000

D. 163,000