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MNO Ltd. Is a Canadian controlled private corporation that sells motors. It owns 60% of the outstanding shares of POR Ltd. During the year POR

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MNO Ltd. Is a Canadian controlled private corporation that sells motors. It owns 60% of the outstanding shares of POR Ltd. During the year POR declared and paid an ineligible dividend of $100,000 of which MNO received $60,000. As a result of paying the dividend POR received a dividend refund in the amount of $30,000. Other income reported by MNO consisted of the following amounts: 100000 Capital gain Eligible Portfolio Dividend from Canada Corp Interest 60000 15000 The capital gain was on the sale of land no longer needed in operations, at the end of 2018, the company's RDTOH balance was $110,000. The 2018 dividend refund was $45.000 The company's taxable income for the year was $100,000 -no foreign income was included in this total. Part 1 tax was correctly calculated at $28,583 The company has associated corps and gets 30,000 allocated to it for Small Business deduction MNO paid taxable dividends of $100,000 during the year of which $10,000 were from the GRIP pool (eligible) Calculate Part IV tax Calculate RDTOH at December 31, 2019 both eligible and non- eligible Calculate amount of dividend refund 5000* 13 650 The General rate reduction was Suppose the GRIP Balance at 2018 was 40,000 and prior eligible dividends paid were $30,000 Calculate amount of GRIP pool balance MNO Ltd. Is a Canadian controlled private corporation that sells motors. It owns 60% of the outstanding shares of POR Ltd. During the year POR declared and paid an ineligible dividend of $100,000 of which MNO received $60,000. As a result of paying the dividend POR received a dividend refund in the amount of $30,000. Other income reported by MNO consisted of the following amounts: 100000 Capital gain Eligible Portfolio Dividend from Canada Corp Interest 60000 15000 The capital gain was on the sale of land no longer needed in operations, at the end of 2018, the company's RDTOH balance was $110,000. The 2018 dividend refund was $45.000 The company's taxable income for the year was $100,000 -no foreign income was included in this total. Part 1 tax was correctly calculated at $28,583 The company has associated corps and gets 30,000 allocated to it for Small Business deduction MNO paid taxable dividends of $100,000 during the year of which $10,000 were from the GRIP pool (eligible) Calculate Part IV tax Calculate RDTOH at December 31, 2019 both eligible and non- eligible Calculate amount of dividend refund 5000* 13 650 The General rate reduction was Suppose the GRIP Balance at 2018 was 40,000 and prior eligible dividends paid were $30,000 Calculate amount of GRIP pool balance

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