A1.2d

AP 13-4 (Part I and IV, Refundable Taxes, ROTOH, and GRIP) R Ltd. is a CCPC with a calendarbased taxation year end. The components of its net incame as follows: Note 1 The active business income amount includes manufacturing profits of 5774 , This amount qualifies for the M\&P deduction. Since the company operates in a provitet that provides a special rate for M\&P profits, the company calculates the federal MSP deduction. Note 2 Both of the investments that generate rental income or loss and foreign infertst Note 2 Both of the investments that generate rental income or loss and foreign inferints e busneit? Note 3 Total dividends received in the 2022 taxation year are made up of the following amounts: Note 4 D Ltd is a wholly owned subsidiary of A Ltd. since R owns all of its shares. As a result, D and A are connected corporations for the purposes of Part N. in 2022 the payment of the taxable cividend to R Ltd resulted in a dividend refund of $79,200, all of which was attributable to D's non-eligble ROTOH. Note 5 . R Ltd owns 60% of the voting shares of F Ltd. As a result, F is controlled by R and therefore connected to it for the purposes of Part IN. In 2022 F Lid was entitled to a dividend refund of $62,700. F Ltd had a nil GRIP account bolance atyear end, with the result. that all of the dividends paid to R Ltd are noneligble dividends. F Ltd had insutficient noneligible RDTOH, however, and was forced to use up all of its eligible RDTOH to maximize its dividend refund. Assume that 20% of its dividend refund is attributable to its eligible RDTOH and 80% to its non-eligble RDTOH. Additional Information 1. On December 16, 2022, R Lid paid taxable dividends to its shareholders totalling $315,000. No other dividends were paid during the vear. It is the policy of the company to designate dividends as eligible only to the extent that the dividend will generate a dividend refund. 2. R Ltd has a 2018 net capital loss balance of $76, 100. In addition, there is a 2020 non-capital loss balance of $40,600. R Lid would tike to deduct the maximum amount of these carry forward losses for the 2022 taxation year. 3. R Ltd has controled both D Lid and F Lid since 2018, and as a result, the three corporations are all associated in the 2022 taxation year and in the immedately preceding taxation year. The companies have agreed that R Lid will be alocated $325,000 of the annual small business limit for 2022, D Ltd $100,000, and F Ltd $75,000. All three corporations use the same taxation vear end. 4. The combined A. II for the three associated corporations for the 2021 taxation year is $48,700 and will be $58,450 for 2022 . The TCEC of the three associaned corporations totals $9,125,000 for the 2021 taxation year and will equal $11,660,000 for 2022 . 5. At December 31, 2021, R Ltd had an eligble ROTOH balance of $26,875, a non-eligble RDTOH balance of $103,850, and a GRIP account balance of $167000. In 2021, R Ltd paid taxcable dividends of $96,500,$16,500 of which were designstod as eligble. As a result of paying the dividends, F Ltd received a dividend refund of $36,991 [(S8 1/3\%) ($96,500). 6. Assume for the purposes of the federal abatement that 97% of R Ltd's taxable income is considered to have been earned in the year in a province or territory. Required: Show all of the calculations used to provide the following required information, including those for which the result is nil. For R Ltd's 2022 taxation year, calculate the following amounts: A. Part I tax payable B. The refundable portion of Part I tax C. Part N tax D. The balance in the GRIP account on December 31,2022 E. The balance in both the eligible RDTOH and noneligble RDTOH on December 31, 2022 F. The dividend refund, if any, showing separately the amount attributable to eligible dividends and the amount attributable to non-eligble dividends G. Total fedoral income tax payable inet of amy dividend refund