It is about Canadian Income Tax

AP 15-3 (Incorporating Investments That Earn Interest) As an employee of a public company, Maxine Ashley has an annual salary of $155,000. After years of playing the provincial lottery without success Maxine wins $500,000. Since her employment income is more than adequate for her personal needs, she plans to invest all of the winnings in bonds for the year ending December 31, 2021, that will pay annual interest at a rate of 5%. The following information is applicable to the province in which Maxine is a resident: The provincial provincial marginal income tax rate for Maxine is 13%. The provincial dividend tax credit on non-eligible dividends is 28% of the gross up. The provincial tax rate on investment income of CCPCs is 12%. Maxine has no other investments. Required: Prepare calculations that will compare the after-tax retention of the interest income on the bonds in 2021 if: A. She owns them personally. B. The bonds are incorporated within a CCPC in which she is the sole shareholder and which pays out all available post-tax interest as dividends. AP 15-3 (Incorporating Investments That Earn Interest) As an employee of a public company, Maxine Ashley has an annual salary of $155,000. After years of playing the provincial lottery without success Maxine wins $500,000. Since her employment income is more than adequate for her personal needs, she plans to invest all of the winnings in bonds for the year ending December 31, 2021, that will pay annual interest at a rate of 5%. The following information is applicable to the province in which Maxine is a resident: The provincial provincial marginal income tax rate for Maxine is 13%. The provincial dividend tax credit on non-eligible dividends is 28% of the gross up. The provincial tax rate on investment income of CCPCs is 12%. Maxine has no other investments. Required: Prepare calculations that will compare the after-tax retention of the interest income on the bonds in 2021 if: A. She owns them personally. B. The bonds are incorporated within a CCPC in which she is the sole shareholder and which pays out all available post-tax interest as dividends