Deadpool Inc. is a CCPC that is $100\%$ owned by Wade Wilson. Deadpool paid $$200,000$ in eligible dividends to Wade in $2022.$ Deadpool is looking into the plan to pay out dividends to Wade again this year but would like to know the implications of each option before continuing. Below outlines information related to the operations of Deadpool for $2023$: Question $2$

Deadpool Inc. is a CCPC that is $100\%$ owned by Wade Wilson. Deadpool paid $$200,000$

in eligible dividends to Wade in $2022.$ Deadpool is looking into the plan to pay out

dividends to Wade again this year but would like to know the implications of each option

before continuing. Below outlines information related to the operations of Deadpool for

$2023$:

Net Income for Tax Purposes was $1,000,000.$ Income as follows:

a$.$ Business Income of $$750,000$

b$.$ Rental Income of $$100,000$

c$.$ Dividend Income of $$150,000$

Deadpool is connected with Spiderman Inc. $$75,000$ of the above dividends were

received from Spiderman Inc. All are non$-$eligible dividends. The companies are

associated, but Spiderman does not have enough income to make any use of the

SBD$,$ so it is all claimed by Deadpool. Spiderman received a dividend refund of

$$40,000$ for its $2023$ dividend payment.

The remaining $$75,000$ in dividends came from marketable securities$.75\%$ were

eligible, $25\%$ were non$-$eligible.

Opening RDTOH balances were as follows:

a$.$ Eligible RDTOH balance of $$28,000$

b$.$ Non$-$eligible RDTOH balance of $$12,000$

Deadpool's total Part I Tax Payable is $229,167.$

Wade would like the $$200,000$ in dividends to be paid out in one of $3$ ways:

$50\%$ paid through a non$-$eligible dividend and $50\%$ paid through an eligible

dividend.

$100\%$ paid through a non$-$eligible dividend.

$100\%$ paid through an eligible dividend.

For our purposes assume that there is a sufficient GRIP balance for all eligible dividends.

Required:

Calculate the ending balance in both the Eligible and Non$-$eligible RDTOH

accounts at the end of $2023.$

For each of the $3$ options listed above, determine what the dividend refund would

be for Deadpool Inc.

Provide a recommendation as to which option you would choose and explain why

you would choose to do so$.$

$1.$

Net Income for Tax Purposes was $1,000,000.$ Income as follows:

a$.$

Business Income of $$750,000$

b$.$

Rental Income of $$100,000$

c$.$

Dividend Income of $$150,000$

$2.$

Deadpool is connected with Spiderman Inc. $$75,000$ of the above dividends were received from Spiderman Inc. All are non$-$eligible dividends. The companies are associated, but Spiderman does not have enough income to make any use of the SBD$,$ so it is all claimed by Deadpool. Spiderman received a dividend refund of $$40,000$ for its $2023$ dividend payment.

$3.$

The remaining $$75,000$ in dividends came from marketable securities$.75\%$ were eligible, $25\%$ were non$-$eligible.

$4.$

Opening RDTOH balances were as follows:

a$.$

Eligible RDTOH balance of $$28,000$

b$.$

Non$-$eligible RDTOH balance of $$12,000$

$5.$

Deadpool$$s total Part I Tax Payable is $229,167.$

Wade would like the $$200,000$ in dividends to be paid out in one of $3$ ways:

$1.$

$50\%$ paid through a non$-$eligible dividend and $50\%$ paid through an eligible dividend.

$2.$

$100\%$ paid through a non$-$eligible dividend.

$3.$

$100\%$ paid through an eligible dividend.

For our purposes assume that there is a sufficient GRIP balance for all eligible dividends.

Required:

$1.$

Calculate the ending balance in both the Eligible and Non$-$eligible RDTOH accounts at the end of $2023.$

$2.$

For each of the $3$ options listed above, determine what the dividend refund would be for Deadpool Inc.

$3.$

Provide a recommendation as to which option you would choose and explain why you would choose to do so$.$