Irene owns 100% of the shares of FitCo Inc., a manufacturer of at-home exercise equipment in Toronto, Ontario. The bookkeeper has already calculated the net income for tax purposes (Div B) for the year ended December 31, 2022, as $980,000. They have asked you to calculate the taxes payable. 

The following items were already included in net income for tax purposes (Div B): 

• Taxable capital gain                                                       $23,500                      
• Non-eligible dividends from Canadian corporations    $48,000 (see note 1 & 2)
• Interest income on a Canadian bond                             $21,500

 

You have also compiled the following additional information: 

• FitCo made $10,000 in charitable donations. 
• FitCo did not claim any non-capital loss or net-capital loss carryovers in the year.
• RestCo is a wholly owned subsidiary of FitCo. For the year ended December 31, 2022, RestCo earned $120,000 of ABI and will claim the maximum SBD that is available.

Note 1 - the non-eligible dividends from Canadian corporates of $48,000 noted above are from two taxable Canadian corporations: 

	Ownership % by FitCo	Taxable dividend
ABC Ltd.	8%	$18,000
XYZ Ltd.	21%	$30,000

Note 2 - ABC Ltd. received a dividend refund of $15,000 and XYZ Ltd. received a dividend refund of $35,000. 

Some additional information:

• FitCo and RestCo's combined taxable capital is $8M for the preceding year. 
• The provincial tax rate is 3% on ABI below the business limit and 12% on high-rate income. 
• FitCo paid $11,000 of non-eligible dividends to the current shareholders in 2022. 
• The balance in NERDTOH on December 31, 2021, was $7,500 and ERDTOH was $0. 
• FitCo made a total of $25,000 in instalments in the current year. 

REQUIRED:

1. Calculate the total taxes payable (federal Part 1 and provincial) 
2. Calculate the Part IV taxes payable
3. Calculate the Refundable Portion of Part 1 tax
4. Calculate the RDTOH balances at the end of December 31, 2022
5. Calculate the dividend refund for FitCo for 2022.