Mrs$.$ Edwards has a husband, Mr$.$ Edwards $($age $50),$ who does not work currently. She also has two children $$ one in high school $($age $16)$ and one in university $($age $19).$ All family members are in the lowest tax bracket. Mrs$.$ Edwards has not hired any of her family members previously in her corporation. Mrs$.$ Edwards is considering gifting $$100,000$ to one of her family members, who will then invest in $20\%$ of her corporation$$s shares. She then plans on paying a $$5,000$ non$-$eligible dividend to that family member.

REQUIRED

a$)$ Determine, for each family member, the taxes they would pay on the dividend if they were selected to receive it$.$ Assume the lowest tax rate $($federal and provincial combined$)$ is $20\%,$ and the highest tax rate is $50\%.$ Only consider the dividend tax credit in these calculations.

b$)$ If each family member had additional personal tax credits, would they be able to use these tax credits to offset the taxes owed on the dividend?