Grant, aged $50,$ has an annual salary of $$120,000.$ This year, he invested $$10,000$ into a retirement savings plan and acquired $1,000$ shares of XYZ Inc. at a share price of $$10$ each. Over the year, Grant earned $$340$ in eligible dividends from XYZ Inc. and later sold the shares at a price of $$11\mathrm{.}30$ per share. Considering a marginal tax rate of $42\%$ and a dividend policy where eligible dividends are grossed up by $38\%$ with a dividend tax credit rate of $26\%,$ assess Morgan's financial decisions.

Detail

Information

Age

$50$

Annual Salary

$$120,000$

Retirement Savings Contribution

$$10,000$

Shares Purchased of XYZ Inc.

$1,000$ at $$10/$share

Total Eligible Dividends

$$340$

Sale Price of Shares

$$11\mathrm{.}30$ per share

Marginal Tax Rate

$42\%$

Dividend Gross$-$Up Rate

$38\%$

Dividend Tax Credit Rate

$26\%$

Based on Grant's financial activities and the tax implications, which statement accurately reflects the situation?

Grant must include $$469\mathrm{.}20$ in his income in relation to the RTP dividend

Grant has a taxable capital gain of $$565$ on the sale of the RTP shares

Grant$$s total tax owing on the RTP capital gain and dividend is $$312\mathrm{.}38$

Grant can reduce his net income to $$110,000$ by claiming the RRSP deduction