Question
During 2021, Ms. Marion Blatz receives $10,000 eligible and $5,000 in non-eligible dividends from taxable Canadian corporations. Her income is such that this additional amount
During 2021,
Ms. Marion Blatz receives $10,000 eligible and $5,000 in non-eligible dividends from taxable Canadian corporations. Her income is such that this additional amount will be subject a Federal income tax rate of 26% and a provincial income tax rate of 10%. 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 the amount of dividends she keeps after tax (Dividend gross-up is 38% for eligible and 15% for non-eligible dividends).
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