Question
J J Corp. a CCPC has year-end on December 31, 2020. The net income for tax purposes/Division B income is shown below: Business income $710,000
J J Corp. a CCPC has year-end on December 31, 2020. The net income for tax purposes/Division B income is shown below: Business income $710,000 Taxable capital gains (from selling the active business assets) 80,000 Taxable dividends from Canadian public corporations 32,000 Taxable dividends from K Inc.* 5,000 Interest on five-year bonds 30,000 Net income for tax purposes $857,000 *J J Corp. owns 100% of the shares of K. Additional information: 1) J J Corp. made charitable donations of $45,000 during the year 2) Net capital losses were $35,000 at the end of 2019. 3) Non-capital losses were $50,000 at the end of 2019. 4) At the end of 2019, J J Corp. had balances in its non-eligible refundable dividend tax on hand (NERDTOH) account of $18,000 and General Rate Income Pool (GRIP) of $2,000. 5) K received a dividend refund of $1,917 from its NERDTOH when it paid the dividend to J J Corp. in 2020. 6) J J Corp. received a dividend refund of $3,000 in 2019. 7) Eligible dividends of $90,000 and capital dividends of $10,000 were paid by J J Corp. on December 31, 2020. 6 8) K claimed the small-business deduction on $80,000 of its active business income. 9) For 2019 and 2020, the taxable capital of J J Corp. and K, combined, was below $10,000,000. Required: Determine J J Corp.'s Part I tax for 2020 Including ART, SBD, GRR, Part IV tax for 2020, ERDTOH and NERDTOH balances at the end of 2020, and dividend refund for 2020. Round all amounts to zero decimal places.
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