NOTE: CANADIAN TAX

Please see image above:

Assuume the company is not associated with any corporation and has a permanent establishment in New Brunswick.

a) Compute the federal Part I tax and assume provincial tax at a 4% rate on active business income eligible for the small business deeduction, and 12% for all other income. Use a separate schedule for each special deduction. For the small business deduction, assume investment income earned in the prior year is the same as the amount earned in the current year. Indicate the amount of the business limit available for the subsidiary if any.

b) Compute the refundable dividend tax on hand balance as of December 31, 2022 showing in detail the calculations, and compute the dividend refund for 2022.

mblem 15 yuititi Enterprises Ltd. is a Canadian-controlled private corporation whosa finas- At December 31, 2021, there was a $0 balance in both the eligible and non-eligible refundable dend tax on hand accounts. The company paid $72,000 in non-eligible dividends during 2022 to inidual shareholders