Max is planning to invest in preferred shares of a friend$$s Canadian$-$controlled private corporation, which are paying a $$19,000$ 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 $15\%,$ how much income tax will Max pay on this income? Also assume that the combined federal and provincial dividend tax credit is equal to the dividend gross$-$up$.$

Question $3$Answer

A$.$

$$4360$

B$.$

$$7638$

C$.$

$$10488$

D$.$

$$9120$