James Bond Limited, a Canadian Controlled private corporation (CCPC) current business operations are over 90% manufacturing and processing. This is the third year of operations, but the first year to show an accounting profit. Previous years business losses for tax purposes were $50,000 in 2020 and $25,000 in 2021. A $30,000 capital loss on the sale of excess raw land was realized in 2021. None of these losses have been used to date. The accountant for James Bond Limited has provided you with the following income statement and miscellaneous financial information for the year ended June 30, 2022.

Sales .......................................................................................................... $8,300,000

Cost of goods sold (Note 2) ....................................................................... 6,300,000

Operating profit ........................................................................................ $2,000,000

General and administrative expenses ........................... $ 500,000

Amortization ............................................................... 800,000

Interest .......................................................................... 190,000 (1,490,000) $ 510,000

Gain on disposal of fixed assets ................................................................. 116,000

Operating profits before income taxes ....................................................... $ 626,000

Income taxes ............................................................................................ (123,900)

Operating profits ........................................................................................ $ 502,100

Other Income..,... $200,000

Net Income $702,100

Notes: 1. The company operates 90% in Toronto, Ontario, and 10% in the USA for the purpose of calculating the Federal Abatement.

2. Other income includes:

Dividends from CCPC corporation 5% interest . .In-eligible . . . . . $ 11,000

Dividends from 100% own subsidiaryIneligible Note 8. . . . . $ 15,000

Patent Income$23,000

Rental Income .. $24,000

Foreign interest income, before withholding taxes of $5,000 .... . . $27,000

Foreign business income before withholding tax of $30,000 was $100,000

Note that all foreign currencies have been stated in Canadian dollars.

3. James Bond allocated $60,000 of its Small Business deduction limit to its 100% subsidiary

4. The 100% owned subsidiary received a dividend refund of $5,000

5. The balance in the Refundable Dividend Tax on Hand (non eligible), on June 30, 2021 was $26,000, before the Dividend Refund (non-eligible) of $8,000 for the fiscal year ended 2021.

6. General and administrative expenses include:

a) Political donations $ 500

b) Advertising in a European magazine distributed only in Europe 1,200

c) Accrued bonuses fully paid September 28, 2022 44,000

7. The gain on disposal of fixed assets consists of the accounting gain on the sale of one of the corporations warehouses and its related land. For many years, the warehouse was the corporations only asset. The sale took place on October 30, 2021. The building was the last Class 1 asset held by the corporation. The total proceeds of disposition on the land and building was $200,000, of which 80% was allocated to the land. The land and building were purchased at a total cost of $120,000, of which 60% was allocated to the land at the time.

8. Purchases made during fiscal year ended June 30, 2022 were as follows:

a) A new warehouse was purchased in February 2022 for $240,000. The cost of the land was $70,000 and the balance was allocated to the building;

b) The company replaced its only photocopier with two new models, one that included a facsimile machine. The new photocopier machines were purchased in August 2021 and the cost $24,000 and $18,000 respectively. The old photocopier was sold for proceeds of $3,500.

c) Improvements on its leased administrative offices were made at a cost of $224,000 in February 2022. The premises were rented in February 2020 for 4 years with two successive options to renew for 5 years each. In February 2020, improvements were made in the amount of $360,000;

d) New manufacturing machinery was purchased in February 2022 for $250,000 to replace old machinery that was sold on e-Bay for $20,000, purchased in January 2016 for $100,000;

e) A 20-year license to use a manufacturing process was purchased on May 1, 2022 for $160,000;

f) The only company truck the company had was sold in January 2022, which was purchased in fiscal 2020 for $44,000. The truck was sold for $22,000.

9 The undepreciated capital cost balances at July 1, 2021 were as follows:

Class 1 .................................................................................................................... 26,600 Class 8 (photocopier) ............................................................................................. 11,750 Class 10 ................................................................................................................... 26,180 Class 13 .................................................................................................................. 300,000 Class 53 .................................................................................................................. 313,750

Assume that the Ontario tax rate is 12%. From March 31, 2021 to July 15, 2022 James Bond Ltd. declared and paid the following taxable cash dividends which were non-eligible: Date Declared - March 31, 2021

Date Paid - April 15, 2021

Amount $36,000

June 30, 2021 July 15, 2021 $25,500

September 30, 2021 October 15, 2021 $31,500

December 31, 2021 January 15, 2022 $35,000

March 31, 2022 April 15, 2022 $20,000

June 30, 2022 July 15, 2022 $15,000

Required: Part 2 Assume that the current fiscal years passive income is equal to the prior years fiscal passive income. Determine, by clearly presenting all component parts and their calculations, (a) total federal Part I tax payable for the year ended June 30, 2022 plus the provincial taxes plus the Part IV tax and (b) the amount of the dividend refund for the year ended June 30, 2022. Show all calculations whether or not necessary to the final answer.

Please show all steps and explanations would be helpful. thank you in advance!!