Max is planning to invest in preferred shares of a friend's Canadian-controlled private corporation, which are paying a $12,000 dividend per year from income taxable at the low corporate rate. Assuming that Max is in the top federal tax bracket (33%) and that the provincial tax on income rate in his province is 17%, how much income tax will Max pay on this dividend income? Assume that the combined federal and provincial dividend tax credit is equal to the dividend gross-up. A. 2,754 B. 5,100 C. 6,900 D. 6,000 QUESTION 7 Mr. J had the following sources of interest income in the current year. Mr. J follows the cash method of reporting his personal interest income and has correctly reported interest income for all prior years on all of his investments. Personal Savings account - interest received Prior year income tax refund - interest received 1-year guaranteed investment certificate - interest accrued to December 31st 3-year guaranteed investment certificate - interest received $515 185 117 3,153 The 1-year guaranteed investment certificate was purchased on September 1st of the current year for $10,000. The interest rate is 3.5% to be paid on maturity on August 31st next year. The 3-year guaranteed investment certificate was purchased on July 1st 3 years ago and matured on June 30th of the current year. The investment was for $20,000 with a 5% annual interest rate. The interest compounded annually and was payable only on maturity. What is Mr. J's taxable interest income for the current year, rounded to the nearest dollar? A. 700 B. 1,803 C. 1,700 D. 3,853 2 points Save Answer