Pearl Inc. is a Canadian-controlled private corporation (CCPC) that owns 100% of the voting shares of Oyster Ltd. and 25% of the voting shares of Shell Corp. The fair market value of the Shell Corp. shares owned by Pearl Inc. is equal to 25% of the fair market value of all Shell Corp. shares. In the current year, Pearl Inc. received the following dividends:

Eligible dividends from various portfolio investments $ 7,500

Non-eligible dividends from Oyster Ltd. $30,200

Non-eligible dividends from Shell Corp. $12,750

As a result of paying the $30,200 dividend, Oyster Ltd. received a dividend refund of $7,550. Shell Corp. received no dividend refund for its dividend payment. Which of the following is the correct amount of Part IV tax payable by Pearl Inc. as a result of receiving these dividends?

Correct answer is $10,425. (please explain how).