Karen Lanctot is a lawyer carrying out her professional practice through Karen Lanctot Professional Corporation (KLPC), a CCPC operating in Ontario The practice has been very successful in recent years and has grown to the point where Karen no longer needs to extract all the earnings of the corporation through salary or dividends to pay for her personal living expenses Karens plan is to start using the after tax proceeds inside the corporation to save for her retirement As a result, she purchased several investments during the year and KLPC now has a split of active and passive income Net income for tax purposes for the taxation year ending December 31, 2021, is calculated as follows Professional fees (net of deductible expenses) $ 500,000 Taxable capital gains 32,000 Eligible dividends from Canadian public companies 18,000 Interest income 10,000 Net income for tax purposes $ 560,000 Additional information Interest income includes $6,000 in interest on overdue accounts receivable and $4,000 of interest on Canadian bonds Professional fees include $80,000 of revenue from Lanctot Painters Ltd , a CCPC owned entirely by Karens brother KLPC made a $15,000 donation during the year to a registered charity providing support to survivors of toxic epidermal necrolysis Net capital losses and non capital losses were zero as of January 1, 2021 Eligible and non eligible refundable dividend tax on hand were zero at the end of the previous taxation year The general rate income pool was $100,000 as of January 1, 2021 Adjusted aggregate investment income for the preceding taxation year was zero KLPCs taxable capital is under $10 million On December 31, 2021, KLPC paid a non eligible dividend of $100,000 and a capital dividend of $32,000 to Karen Required 1 Determine KLPCs federal income tax payable for the 2021 fiscal year 2 Determine KLPCs eligible and non eligible refundable dividend tax on hand balance at the end of 2021 3 Determine KLPCs dividend refund for 2021 4 How will Karens decision to use KLPC for her retirement savings affect the corporations tax return next year NEED 1 3 WITH AN EXPLANATION PLS

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Karen Lanctot is a lawyer carrying out her professional practice through Karen Lanctot Professional Corporation (KLPC), a CCPC operating in Ontario. The practice has been

Karen Lanctot is a lawyer carrying out her professional practice through Karen Lanctot Professional Corporation (KLPC), a CCPC operating in Ontario. The practice has been very successful in recent years and has grown to the point where Karen no longer needs to extract all the earnings of the corporation through salary or dividends to pay for her personal living expenses. Karens plan is to start using the after-tax proceeds inside the corporation to save for her retirement. As a result, she purchased several investments during the year and KLPC now has a split of active and passive income. Net income for tax purposes for the taxation year ending December 31, 2021, is calculated as follows:


Professional fees (net of deductible expenses)	$	500,000
Taxable capital gains		32,000
Eligible dividends from Canadian public companies		18,000
Interest income		10,000
Net income for tax purposes	$	560,000

Additional information:

Interest income includes $6,000 in interest on overdue accounts receivable and $4,000 of interest on Canadian bonds.
Professional fees include $80,000 of revenue from Lanctot Painters Ltd., a CCPC owned entirely by Karens brother.
KLPC made a $15,000 donation during the year to a registered charity providing support to survivors of toxic epidermal necrolysis.
Net capital losses and non-capital losses were zero as of January 1, 2021.
Eligible and non-eligible refundable dividend tax on hand were zero at the end of the previous taxation year.
The general rate income pool was $100,000 as of January 1, 2021.
Adjusted aggregate investment income for the preceding taxation year was zero.
KLPCs taxable capital is under $10 million.
On December 31, 2021, KLPC paid a non-eligible dividend of $100,000 and a capital dividend of $32,000 to Karen.

Required: 1. Determine KLPCs federal income tax payable for the 2021 fiscal year. 2. Determine KLPCs eligible and non-eligible refundable dividend tax on hand balance at the end of 2021. 3. Determine KLPCs dividend refund for 2021. 4. How will Karens decision to use KLPC for her retirement savings affect the corporations tax return next year?

*NEED 1 & 3 WITH AN EXPLANATION PLS