Coopers Incorporated is a Canadian-controlled private corporation located in London, Ontario. For its fiscal year ended December 31, 2019, the corporation had calculated its income for tax purposes under Division B as follows:

Canadian source:

Wholesale income .................................................................................... $205,000

Sale of Land Inventory** ......................................................................... 80,000

Rental income from warehouse fully rented on a five-year lease ..................... 15,000

Patent income from 60% owned subsidiary***............................................. 79,000

Interest on outstanding accounts receivable in retailing business ..................... 25,000

Recapture of CCA from sale of fixtures used in retailing business ....... 55,000

Interest income from 60% owned subsidiary***.................................................. 17,000

Foreign business Income.. 50,000

Foreign non business income..... 19,000

Taxable capital gain (from non-active assets)........................................................ 42,000

Dividend from connected Corporation (eligible)****..... 8,000

Dividends from non-connected taxable Canadian corporation.(non-eligible) 31,000

Division B net income for tax purposes ................................................. $626,000

**Land was sold on a regular basis by the company and recorded above as Taxable capital gains

*** 60% subsidiary is the only associated company to Coopers. It earned only active business income

**** The connected corporation received a refund of $2,000 as result of paying out the dividend

Additional information:

Coopers Inc. made the following selected payments during the year:

Charitable donations ................................................................... 7,000

Taxable non-eligible dividends .................................................... 130,000

Withholding tax on non-business income was .. 4,500

The balances in the tax accounts on December 31, 2020 were:

Charitable donations from 2019 ...................................................................$ 4,000

Non-capital losses from 2015 ....................................................................... 37,000

Net capital losses from 2018 ...................................................................... 45,000

Refundable dividend tax on hand (non eligible)......................................... 18,000

Refundable dividend tax on hand (eligible) 6,000

Dividend refund (non-eligible) for 2020 ..................................... 7,000

Coopers Inc. allocated $30,000 of its business limit to its other associated corporations.

Taxable income earned in Ontario, which is the Canadian jurisdiction in which Coopers Inc. operates, is approximately 90% of the total gross revenues and Salaries and wages. The remaining 10% is from the United States. Assume the business foreign tax credit is $5,000 and the General rate reduction is $47,450 (it is a given for the question-do not calculate these figures).

Coopers Incorporated has asked you to:

(A) review the above information and to make any corrections necessary with the exceptions of the assumptions in the question provided above. Compute the federal Part I tax and provincial tax at a 11% rate on federal taxable income for the 2021 taxation year, and

(B) Compute the dividend refund for 2021 and the amount of any RDTOH to be carried forward.