Daveco. Inc. is a Canadian controlled private corporation. It is associated with two other CCPCs and has agreed that its share of the annual business limit for 2021 will be $120,000. Daveco's fiscal year end is December 31. The following is the company's condensed Income Statement for the year ended December 31, 2021: NOTE: The associated company received a dividend refund of $9,000 as a result of paying the non-eligible dividend. Information about operating income is as follows: Depreciation \& CCA: Operating expenses included $94,000 of depreciation expense. The following are the UCC balances for each dass of assets at January 1, 2021: During 2021, there were $54,500 of additions to Class 8. The additions qualify for the accelerated investment incentive. Also, Class 8 assets with a cost of $20,000 were sold for $26,000. The net book value of these assets was $15,500. During the year, the company changed its policy of owning its fleet of delivery vehicles and decided instead to lease the vehicles. The existing fleet of Class 10 vehicles as sold for $123,700. The capital cost of the vehicles was $300,000 and the net book value was $123,700, an amount equal to the proceeds Landscaping: Daveco Inc. spent $15,000 on landscaping at its office building. This amount was recorded as an asset in the company's accounting records and no amortization was recorded on the asset in the current year. Charitable Donations: Daveco made $5,000 in charitable donations that were deducted as operating expenses. Meals \& Entertainment: The company's operating expenses induded $10,890 of meals and entertainment expenses. Club Dues: The company's operating expenses included a $5,000 corporate membership fee to the local golf and country dub. Interest \& taxes on vacant land: The company's operating expenses induded interest of $500 and property taxes of $2,200 on vacant land. Other Information: 1. 90% of Daveco's taxable income can be allocated to a province. 2. Daveco had active business income of equal to its net business income for tax purposes for 2021. (This would be the amount without considering the items (and related adjustments) in "other income" when calculating the Net Income for Tax Purposes.) 3. The December 31,2020 balance in Daveco's noneligible refundable dividend tax on hand (NERDTOH) account ws $60,000. The dividend refund for the year ending December 31 , 2020 was $12,267 and was received in 2021. 4. At the end of 2020, Daveco had a nil balance in its GRIP and a nil balance in its eligible refundable dividend tax on hand (ERDTOH) account. None of the $32,000 of dividends paid in 2020 was designated as eligible. 5. At the beginning of 2021 , Daveco has a net capital loss carry forward of $4,500 and a noncapital loss carry forward of $6,200. Daveco intends to deduct the maximum amount of any carry forwards against its 2021 income. 6. For 2020, the Adjusted Aggregate investment income of Daveco and its associated companies is $15,000 and their Taxable Capital Employed in Canada was $2,435,000. 5. At the beginning of 2021 , Daveco has a net capital loss carry forward of $4,500 and a noncapital loss carry forward of $6,200. Daveco intends to deduct the maximurn amount of any carry forwards against its 2021 income. 6. For 2020, the Adjusted Aggregate Investment Income of Daveco and its associated companies is $15,000 and their Taxable Capital Employed in Canada was $2,435,000. 7. Daveco paid $30,000 in taxable dividends during 2021 . $17,000 of these dividends were designated as eligible. REQUIRED: A. Calculate the Net income for Tax Purposes and Taxable income for the year ended December 31, 2021. (Show the calculation of CCA by class induding the ending UCC for each dass.) B. Calculate Daveco's Part I Taxes Payable for the year ended December 31,2021 including the refundable portion of Daveco's Part I Taxes Payable. C. Calculate Daveco's Part IV Taxes Payable for 2021 . D. Calculate Daveco's GRIP balance at December 31, 2021. E. Calculate the balances in Daveco's Eligible RDTOH and non-eligible RDTOH on December 31, 2021. F. Calculate Daveco's dividend refund for 2021 (to be received in 2022). Daveco. Inc. is a Canadian controlled private corporation. It is associated with two other CCPCs and has agreed that its share of the annual business limit for 2021 will be $120,000. Daveco's fiscal year end is December 31. The following is the company's condensed Income Statement for the year ended December 31, 2021: NOTE: The associated company received a dividend refund of $9,000 as a result of paying the non-eligible dividend. Information about operating income is as follows: Depreciation \& CCA: Operating expenses included $94,000 of depreciation expense. The following are the UCC balances for each dass of assets at January 1, 2021: During 2021, there were $54,500 of additions to Class 8. The additions qualify for the accelerated investment incentive. Also, Class 8 assets with a cost of $20,000 were sold for $26,000. The net book value of these assets was $15,500. During the year, the company changed its policy of owning its fleet of delivery vehicles and decided instead to lease the vehicles. The existing fleet of Class 10 vehicles as sold for $123,700. The capital cost of the vehicles was $300,000 and the net book value was $123,700, an amount equal to the proceeds Landscaping: Daveco Inc. spent $15,000 on landscaping at its office building. This amount was recorded as an asset in the company's accounting records and no amortization was recorded on the asset in the current year. Charitable Donations: Daveco made $5,000 in charitable donations that were deducted as operating expenses. Meals \& Entertainment: The company's operating expenses induded $10,890 of meals and entertainment expenses. Club Dues: The company's operating expenses included a $5,000 corporate membership fee to the local golf and country dub. Interest \& taxes on vacant land: The company's operating expenses induded interest of $500 and property taxes of $2,200 on vacant land. Other Information: 1. 90% of Daveco's taxable income can be allocated to a province. 2. Daveco had active business income of equal to its net business income for tax purposes for 2021. (This would be the amount without considering the items (and related adjustments) in "other income" when calculating the Net Income for Tax Purposes.) 3. The December 31,2020 balance in Daveco's noneligible refundable dividend tax on hand (NERDTOH) account ws $60,000. The dividend refund for the year ending December 31 , 2020 was $12,267 and was received in 2021. 4. At the end of 2020, Daveco had a nil balance in its GRIP and a nil balance in its eligible refundable dividend tax on hand (ERDTOH) account. None of the $32,000 of dividends paid in 2020 was designated as eligible. 5. At the beginning of 2021 , Daveco has a net capital loss carry forward of $4,500 and a noncapital loss carry forward of $6,200. Daveco intends to deduct the maximum amount of any carry forwards against its 2021 income. 6. For 2020, the Adjusted Aggregate investment income of Daveco and its associated companies is $15,000 and their Taxable Capital Employed in Canada was $2,435,000. 5. At the beginning of 2021 , Daveco has a net capital loss carry forward of $4,500 and a noncapital loss carry forward of $6,200. Daveco intends to deduct the maximurn amount of any carry forwards against its 2021 income. 6. For 2020, the Adjusted Aggregate Investment Income of Daveco and its associated companies is $15,000 and their Taxable Capital Employed in Canada was $2,435,000. 7. Daveco paid $30,000 in taxable dividends during 2021 . $17,000 of these dividends were designated as eligible. REQUIRED: A. Calculate the Net income for Tax Purposes and Taxable income for the year ended December 31, 2021. (Show the calculation of CCA by class induding the ending UCC for each dass.) B. Calculate Daveco's Part I Taxes Payable for the year ended December 31,2021 including the refundable portion of Daveco's Part I Taxes Payable. C. Calculate Daveco's Part IV Taxes Payable for 2021 . D. Calculate Daveco's GRIP balance at December 31, 2021. E. Calculate the balances in Daveco's Eligible RDTOH and non-eligible RDTOH on December 31, 2021. F. Calculate Daveco's dividend refund for 2021 (to be received in 2022)