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678 Chapter 13 Assignment Problems Assignment Problem Thirteen - 2 on Investments Lid. is a Canadian controlled private corporation that sells office supply (Part I and Part IV Refundable Taxes) owns 52 percent of the outstanding shares of Puligny Inc. On December 15, 2019, Pups declared and paid a dividend of $122,000, of which Burton Investments Lid. rece.30 ceived $63,440 (52 percent). None of this dividend was designated as eligible by Puligny. As paying the $122,000 dividend, Puligny Inc. received a dividend refund in the amount $12,500. other 2019 income that was reported by Burton Investments consisted of the following amounts: $18,000 Capital Gain Eligible Dividends From Bank Of Montreal Shares 13,480 1,150 Interest The capital gain was on the sale of land that had been used as an auxiliary parking lot, but was no longer needed. Burton's office supply business is seasonal and, as a consequence, temporary cash balances must be set aside for the purchase of inventories during the busy parts of the year. All of the $1, 150 in interest was earned on such temporary cash balances. At the end of 2018, the Company's Refundable Dividend Tax On Hand balance was $22,346. The 2018 dividend refund was $7,920. The corporation did not have a GRIP balance on December 31, 2018. The Company's Taxable Income for the year ending December 31, 2019 was $62,800. No foreign income was included in this total. Assume the Part I Tax Payable for the year ending December 31, 2019 was correctly calculated as $12,560. Because of its association with Puligny Inc., its share of the annual business limit on income eligible for the small business business limit. deduction is $40,000. Burton's active business income is more than its share of the annual Burton Investments paid taxable dividends of $22,500 in 2019. It is the policy of the corpora- tion to designate dividends as eligible only to the extent that a dividend refund will be available on their payment. For 2018, Burton and Puligny had combined ADJUSTED Aggregate Investment Income of Required: $23,000. Their combined Taxable Capital Employed In Canada was $1,600,000 for 2018- RDTOH. A. Determine the transitional balances for Burton's Eligible RDTOH and its Non-Eligible B. Determine the refundable portion of Burton's Part I Tax Payable for 2019. C. Determine Burton's Part IV Tax Payable for 2019. Non-Eligible RDTOH. D. Determine the December 31, 2019 balances in Burton's Eligible RDTOH and its F Determine Burton's 2019 dividend refund, providing separate amounts for refunds of eligible dividends and refunds on non-eligible dividends. Assignment Problem Thirteen - 3 (Transitional RDTOH Balance