Brianne is at the federal marginal tax rate (MTR) of 26% for income tax purposes. All of her investments are held in her non-registered discount brokerage account.The only tax credit remaining available to Brianne is the eligible dividend tax credit.

Earnings	Amount	Note
Dividends	$802	From three companies for which she received additional company shares because of her dividend re-investment plan (DRIP). The three companies operate only in Canada and pay taxes at regular rates.
Dividends	$250 CDN	Canadian owned company with its sole operations in California on which no foreign taxes were paid. (See textbook regarding foreign dividends - no gross up or dividend tax credit)
Canadian Western Bank Common shares sold	$24,792 total sales proceeds	The adjusted cost base (ACB) is $22,000

Given the gross-up and dividend tax credit rates provided below, the best estimate of the federal income tax expense, based on the above earnings in a single year, is closest to:

Dividend Gross-up Dividend tax credit

38% 15.0198% of taxable amount