A1.2b

AP 13-2 (Part I and Part IV Refundable Taxes) Burton Investments Ltd. is a CCPC that selis office supplies. It owns 52% of the outstanding shares of Puligny Inc. On December 15, 2022, Puligny Ine, dectared and paid a dividend of $122,000, of which Burton Investments Lid. received $63,440(52%). None of this dividend was designated as eligble by Puligny. As a result of paying the $122,000 dividend, Puligny Inc. received a dividend refund in the amount of $12.500 from its noneligible RDTOH. Other 2022 income that was reported by Burton Imestments consistod of the following amounts: The taxable capital gain was on the sale of land that had been used as an ausinary parking lot but was no longer needed. Burton's office supply business is sessonal and, as a consequence, temporary cash balances must be set aside for the purchase of inventories during the busy parts of the yoar. At of the $1,150 in interest was earned on such temporary cash balances. At the beginning of 2022 , the compary's noneligble RDTOH balance was $14,426. The balance in the eligible RDTOH was nil. The corporation's GRiP account balance on January 1, 2022 was nil. The company's taxable income for the calendarbased taxation year ending December 31, 2022 , was $62,800. No foreign income was included in this total. Assume the Part I tax payable for the 2022 taxation year, was correctly calculated as $12,560. Because of ins association with Puligny Inc., its share of the 2022 annual business limit is 540,000 . Burton's active business income exceeds the allocated 2022 business limit. Burton Investments paid taxable dividends of $22,500 in 2022. It is the policy of the corporation to designate dividends as eligible only to the extent that a dividend refund will be available. For 2021, Burton and Puligry had combined adjusted aggregate investment income (AAli) of For 2021, Burton and Puligny had combinal employed in Cansda (TCEC) of $1,600,000. Required: A. Determine Burton's Part I refundable tax for 2022. B. Determine Burton's Part IV tax for 2022. C. Determine the December 31, 2022, balances in Burton's eligible and non-eligible RD D. Determine Burton's 2022 dividend refund, providing separate amounts for refunds dividends and refunds on noneligible dividends