Gloria Limited is a CCPC corporation that distributes computers in Quebec, Ontario, and the United States. For the year ended September 30, 2022, its accounting income
was as follows:
Sales $1,200,000
Cost of sales and other expenses including CCA . . . ... . . . . (725,000)
Operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475,000
Other net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198,500
Net income before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 673,500
Provision for taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (200,725)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 472,775
Selected Additional Information
(1) Other income includes:
Dividends from Public corporation ......1% interest . . eligible . . . . . $ 25,000
Dividends from 60% own subsidiary.........Ineligible Note 7 . . . . . . $ 20,000
Rental Income Note 1.......................................................... $43,000
Interest — T Bills (investment of excess cash from business). . . . . . . . . . . . . 22,500
— bonds of connected, not associated corporations.......... 16,000
Profit on sale of land that was held as inventory . . . . . . . . . . . . 41,000
Foreign interest income, before withholding taxes of $10,000 .note 2. . . 31,000
(2) Gloria Limited has a non-capital loss carry-forwards of ...................$43,545.
(3) Donations to registered charities were $50,000 (not included in calculating Net Income)
(4) Sales include capital gains of $90,000 on in-active assets and Foreign income of 60,000 (Canadian dollars) before withholding tax of $15,000 (Canadian dollars)
(5) Gloria has Net capital losses from 2020 of $18,000.
(6) Gloria allocated $30,000 of it’s Small Business deduction limit to its subsidiary
(7) The 60% owned subsidiary received a dividend refund of $4,000
(8) The balance in the Refundable Dividend Tax on Hand (noneligible), on September 30, 2021, was $31,000, before the Dividend Refund (non-eligible) of $17,000 for the fiscal 2021 year end.

Notes and Additional Information:
Note 1 Rental income arose from seasonal excess warehousing space of 11%. The
warehouse is normally used in the company’s active business.
Note 2 Foreign interest income are in Canadian dollars.
Gloria Limited has permanent establishments in Quebec, Ontario, and the United States. Its
gross revenues and salaries and wages data have been allocated as follows:
Ontario Quebec United States.
Gross revenues . . . . . . . . . . . . . . .$800,000 $600,000 $200,000
Salaries and wages . . . . . . . . . . . . 300,000 150,000 50,000
Assume that the Ontario rate is 14% and Quebec corporation tax rates is 11%. Also, assume that taxable income for Quebec and is Ontario computed on the same basis as federal
taxable income.
From September 30, 2021 to October 15, 2022 Gloria Ltd. declared and paid the following taxable cash dividends which were non-eligible:
Date Declared Date Paid Amount
September 30, 2021 October 15, 2021 $26,500
December 31, 2021 January 15, 2022 $30,000
March 31, 2022 April 15, 2022 $22,500
June 30, 2022 July 15, 2022 $24,500
September 30, 2022 October 15, 2022 $15,000
Required:
Assume that the current fiscal year’s passive income is equal to the prior year’s fiscal passive income. Determine, by clearly presenting all component parts and their calculations,
(a) total federal Part I tax payable for the year ended September 30, 2022, plus the provincial taxes plus the Part IV tax and
(b) the amount of the dividend refund for the year ended September 30, 2022.