Question
During 2021, Ms. Andrea Molsen receives eligible dividends of $15,000 and non-eligible dividends of $14,000. Her income is such that this additional amount will
During 2021, Ms. Andrea Molsen receives eligible dividends of $15,000 and non-eligible dividends of $14,000. Her income is such that this additional amount will be subject to a federal income tax taxed of 26% and a 7% provincial income tax rate. The combined federal and provincial dividend tax credit is equal to the gross up. Determine the total federal and provincial income tax that will be payable on these dividends and amount of dividends she keeps after tax (Dividend gross-up is 38% for eligible and 15% for non-eligible dividends). For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
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ANS WER Federal tax on eligible dividends 15 000 x 26 3 900 Federa...Get Instant Access to Expert-Tailored Solutions
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Introduction To Federal Income Taxation In Canada
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
33rd Edition
1554965020, 978-1554965021
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