Cinder Inc. is a Canadian-controlled private corporation based in your province. The company operates a wholesale business. The following information is provided for its year ended May 31,2022 : 1. Net income for tax purposes is $221,000. Included in this amount is the following: 2. PQ Ltd. is a Canadian-controlled private corporation. Cinder owns 60% of its common voting shares. In 2022, PQ claimed the small business deduction on $416,000 of its active business income. PQ paid a non-eligible dividend of $16,000, of which Cinder's share is $12,000(60%). As a result of the dividend, PQ received a dividend refund of $7,000 from its non-eligible RDTOH. 3. Cinder made contributions of $10,000 to registered charities. This amount has been correctly adjusted for in computing net income for tax purposes. 4. The following information is from the 2021 Tax return of Cinder: 5. On May 31,2022 , Cinder paid taxable dividends of $32,000 (eligible $16,000 and non-eligible $16,000 ) to its shareholders. Required: Determine C.inder's federal income tax for the 2027 taxation vear IUse 0.3067 when multiplying to represent 302/3% and 0.3833 when nd round your final answer to the nearest dollar. Small business deduction - 19% least of Refundable tax on investment income 102/3% times the least of: \begin{tabular}{|l|l|} \hline \hline & \\ \hline \end{tabular} PART I TAX Less: Less: Dividend Refund (i) Lessor of: (a) 381/3% (b) Plus (ii) Lessor of: (a) (b) Federal income tax payable Cinder Inc. is a Canadian-controlled private corporation based in your province. The company operates a wholesale business. The following information is provided for its year ended May 31,2022 : 1. Net income for tax purposes is $221,000. Included in this amount is the following: 2. PQ Ltd. is a Canadian-controlled private corporation. Cinder owns 60% of its common voting shares. In 2022, PQ claimed the small business deduction on $416,000 of its active business income. PQ paid a non-eligible dividend of $16,000, of which Cinder's share is $12,000(60%). As a result of the dividend, PQ received a dividend refund of $7,000 from its non-eligible RDTOH. 3. Cinder made contributions of $10,000 to registered charities. This amount has been correctly adjusted for in computing net income for tax purposes. 4. The following information is from the 2021 Tax return of Cinder: 5. On May 31,2022 , Cinder paid taxable dividends of $32,000 (eligible $16,000 and non-eligible $16,000 ) to its shareholders. Required: Determine C.inder's federal income tax for the 2027 taxation vear IUse 0.3067 when multiplying to represent 302/3% and 0.3833 when nd round your final answer to the nearest dollar. Small business deduction - 19% least of Refundable tax on investment income 102/3% times the least of: \begin{tabular}{|l|l|} \hline \hline & \\ \hline \end{tabular} PART I TAX Less: Less: Dividend Refund (i) Lessor of: (a) 381/3% (b) Plus (ii) Lessor of: (a) (b) Federal income tax payable
