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Hi, this is income tax homework question. help needed, thanks The following is the Week 1 homework (only this question). Bob is the only shareholder

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Hi, this is income tax homework question. help needed, thanks
image text in transcribed
The following is the Week 1 homework (only this question). Bob is the only shareholder of Whatsup Inc., a Canadian controlled private company. For the taxation year ending December 31, 2018, the Company has Taxable Income, before any consideration of salary to Bob and/or the payment of dividends, of $135,000. All of this income qualifies for the small business deduction. Bob's only source of income is either dividends or salary from Whatsup Inc. For 2018, he has available tax credits of $4,200 (combined federal and provincial). Relevant information with respect to his current province of residence is as follows: The tax rate for individuals on the first $46,605 of taxable income is 8 percent. The provincial dividend tax credit is equal to 32 percent of the gross up on noneligible dividends. All of the company's activities are confined to a province in which the applicable corporate rate of taxation is 3 percent on income eligible for the small business deduction. The province does not levy a payroll tax. Any corporate taxes for 2018 will need to paid out of cash on hand. As Bob's Tax Advisor what would you suggest he do at the end of 2018? In your response, indicate any assumptions made and other potential information which might impact your advise

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