Ku Jung owns all of the shares of Jay Ltd. His adjusted cost base for these shares is $1000. He has decided to retire. After the assets have been sold and all corporate taxes paid, there is $720,000 available for distribution. The balances in the tax accounts of Jay Ltd. Are as follows:

Paid up capital: $1000

Capital dividend account $100,000

Non-eligible RDTOH $50,000

What amount of dividends will be subject to tax on mr kings tax return if, during 2022, the final payment is made to Mr Jung? Assume that the company does not have a balance in its GRIP account and all elections are made to minimize the tax effect.

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