Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bailey Chance has a successful career in the finance field. In her spare time, she has built up a portfolio of investments that pays out

Bailey Chance has a successful career in the finance field. In her spare time, she has built up a portfolio of investments that pays out dividends on a regular basis. In the 2020 taxation year, Bailey receives the following dividends:

Non-eligible Dividends from CCPC shares $10,000
Eligible Dividends from Taxable Canadian Corporations 14,000
Dividends on Foreign Shares (net of 15% withholding tax) (Note) 13,175
Total Dividends Received $37,200

Note: This means 15% foreign withholding tax was already deducted.

In this question, do not worry about adding a negative sign in your inputs.

Required:

A. Determine the amount that Bailey would include for these dividends under section 3(a) of the calculation for Net Income for Tax Puporses.

Taxable Non-Eligible Dividends $
Taxable Eligible Dividends
Taxable Foreign Dividends
Total Taxable Dividends

B. Indicate the federal tax credits that Bailey would receive for each of the different types of dividends:

Federal Dividend Tax Credit on Non-Eligible Dividends
Federal Dividend Tax Credit on Eligible Dividends
Federal Tax Credit on Foreign Dividends

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Biblical Finance Reflections On Money Wealth And Possessions

Authors: Mark Lloydbottom, Keith Tondeur

1st Edition

0956395023, 978-0956395023

More Books

Students also viewed these Finance questions