Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lorin has $3,000 of eligible dividend income and $9,000 of capital gains in her equity investment in 2022. Her marginal tax rate is 43.41% and

Lorin has $3,000 of eligible dividend income and $9,000 of capital gains in her equity investment in 2022. Her marginal tax rate is 43.41% and her effective tax rate is 32.23% for the same year. Assume that she lives in Toronto, is eligible for dividend tax credit and the gross-up rate for eligible dividends is 38%. Also, the total (federal and provincial combined) dividend tax credit rate is 25.02% for Ontario residents. 


Calculate the amount of taxes she'll pay on her dividend income and capital gains combined from her equity investment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the taxes Lorin will pay on her dividend income and capital gains you can follow these ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Gail Fayerman

1st Canadian Edition

9781118774113, 1118774116, 111803791X, 978-1118037911

More Books

Students also viewed these Banking questions