Problem (1)

Blackwood Inc. is a Canadian controlled private company. It has two subsidiaries. Information related to these subsidiaries is as follows:

Whitewood Ltd. Blackwood owns 65 percent of Whitewood Ltd. During 2019, Whitewood paid total dividends of $100,000. Whitewood received a dividend refund of $20,000 as a result of paying these dividends.

Redwood Inc. Blackwood owns 100 percent of Redwood Inc. During 2019, Redwood paid total dividends of $72,000. No dividend refund was received as a result of paying these dividends

In addition to the dividends received from subsidiaries, Blackwood received $35,000 in dividends from various portfolio investments.

Required:

Determine the amount of Part IV Tax Payable by Blackwood Inc. as a result of receiving these dividends.