Fancom Inc. is an Alberta corporation that qualifies as a Canadian controlled private company. For the taxation year ending December 31, 2018, the components of its Net Income for Tax Purposes and Taxable Income are as follows: Active Business Income (Note 1) $328,000, Gross Foreign Business Income 40,800, Gross Foreign Non-Business Income 31,200, Interest On Long-Term Investments 49,900, Taxable Capital Gains ((1/2)($33,000 )) 16,500, Eligible Dividends Received On Portfolio Investment 21,000, Net Income For Tax Purposes $487,400 Eligible Dividends Received (21,000), Charitable Contributions (86,400), Net Capital Loss Carry Forward Deducted (13,900), Non-Capital Loss Carry Forward Deducted (263,000), Taxable Income $103,100

Note 1 As determined by the Income Tax Regulations, $152,000 of this active business income was manufacturing and processing profits.

Note 2 Foreign jurisdictions withheld $6,120 from the foreign business income and $7,800 from the foreign non-business income.

Other Information:

1. During the year ending December 31, 2018, Fancom used its existing cash resources to pay taxable dividends of $223,200. Of this total, $49,300 was designated as eligible.

2. As of December 31, 2017, Fancom Inc. has a GRIP of $49,360. During 2017, the company designated $18,700 of its dividends paid as eligible.

3. As of December 31, 2017, the balance in Fancom's RDTOH account was $27,400. A dividend refund of 513,400 was claimed in the 2017 corporate tax return.

4. As determined by the Income Tax Regulations, 85 percent of Fancom 's Taxable Income can be allocated to a Canadian province.

Required: Show all of the calculations used to provide the following required information, including those for which the result is nil.

A. Calculate Fancom's Part IV Tax Payable for the year ending December 31, 2018.

B. Assume that the foreign business and non-business tax credits are equal to the foreign taxes withheld. Calculate Fancom's minimum Part I Tax Payable for the year ending Page 7 of 28 December 31, 2018. As the corporation operates in a province that has a reduced rate for M&P activity, a separate calculation of the federal M&P deduction is required.

C. Assume the foreign business and non-business tax credits are equal to the foreign taxes withheld. Calculate Fancom's dividend refund for the year ending December 31, 2018.

D. Determine the December 31, 2018 balance in Fancom's GRIP account.