I know a and b but unsure on c.

Taxable Income Calculation for $90,000

a)What is the AB corporate tax for this level of income?

2%

b)What is the personal tax for this level of income?

10%

c)Assume the after tax income you obtained in Part a is paid to the sole shareholder of the business as dividend. How much more tax does the shareholder have to pay on this personal income if there is no dividend tax credit? Is the total of a and c larger than b? This is referred to as double taxation.

Use the below Excel-based template (next page) as a starting point, conduct the necessary calculations and submit you completed spreadsheet by the deadline. State your answers to the assignment questions as full sentences.

IC o Total Tax Net Income After Tax Total Income 90000 Income FEDERAL Tax Rate Tax XOX Income ALBERTA Tax Rate Tax KY XX Total OX XOX KK XX R P 10 R T E Total Tax Net Income After Tax Total Income 90000 ALBERTA Tax Rate Income P E R S o FEDERAL Tax Rate Tax xox XOX Income XX XOX b Total KOK ROK KK XX IN A L Total Tax Net Income After Tax Total Income XOK FEDERAL Tax Rate WW Income KOY Tax Income XX ALBERTA Tax Rate Tax KY XX P E R S lo N xx XX Total KOK KK XX L IC o Total Tax Net Income After Tax Total Income 90000 Income FEDERAL Tax Rate Tax XOX Income ALBERTA Tax Rate Tax KY XX Total OX XOX KK XX R P 10 R T E Total Tax Net Income After Tax Total Income 90000 ALBERTA Tax Rate Income P E R S o FEDERAL Tax Rate Tax xox XOX Income XX XOX b Total KOK ROK KK XX IN A L Total Tax Net Income After Tax Total Income XOK FEDERAL Tax Rate WW Income KOY Tax Income XX ALBERTA Tax Rate Tax KY XX P E R S lo N xx XX Total KOK KK XX L