Problem 8

Problem 8 Why Lamited is a Canadian-controlled private corporation operating solely in Newfoundland and Labrador. Poe its taxation year ended December 31, 2018, the compary reported the following income under Division B Active business income Taxable capital gain Canadian-sourve interest incone Taxable portfolio dividends froem Caradian resident public corporations 85,000 37,500 45,000 c.18,750 The corporstion is carrying forward the following amounts Non-captal losses Net capital losses (arising in 2013) 40,000 . 52,000 The halance in the refundable dividend tax on hand account at December 31, 2017 was nil O November 30, 2018,thcmpary paid $112,500 in taxable dividends t individuals. The taxable its shareholders all of whom are |tax and provincial tax at a 4% rate payable by the company for 2018. (B) Compute the refundable dividend tax on hand balance as at December 31,2018 and cocupute dividends of $18,750 were reoeived on November 1, 2018. (A) Compute the federal Part the dividend refund for 2018