Question 1 (16 marks) Raptor Inc. (RI) is a Canadian-controlled private corporation and has provided you with the following selected information related to its 2019 taxation year ended December 31, 2019. RI Inc. did not have taxable capital in excess of $10,000,000 in 2018. Canadian manufacturing profits $451,500 Canadian retail business income 50,000 Taxable capital gains(non-active) 4,500 Interest income: Canadian long-term bonds 40,000 Interest on overdue accounts receivable 5,000 Dividend income: From taxable Canadian corporations (eligible dividend) (RI owns less than 5% of the shares of these corporations) 9,000 From U.S. corporations (before U.S. tax of $1,800) (these corporations are not foreign affiliates) 12,000 Non capital losses from prior years applied in the calculation of taxable income 55,000 Net capital losses from prior years applied in the calculation of taxable income 4,500 Calculations correctly prepared under the Income Tax Act Taxable income $503,500 Part I tax payable (including additional refundable tax) 66,682 Foreign non-business tax credit 1,800 Miscellaneous Items Refundable dividend tax on hand as of December 31, 2018 (non-eligible) Dividend refund received in respect of the 2018 taxation year (non-eligible) Taxable dividends paid during 2019 (non-eligible) $22,000 9,000 99,000 Required: Determine, for RI Inc., by clearly presenting all component parts and their calculations, (a) the amount of the small business deduction, and (b) the amount of the dividend refund for 2019. Do not re-compute the Part I tax and the other related tax credits. Assume that they have been computed correctly. Question 1 (16 marks) Raptor Inc. (RI) is a Canadian-controlled private corporation and has provided you with the following selected information related to its 2019 taxation year ended December 31, 2019. RI Inc. did not have taxable capital in excess of $10,000,000 in 2018. Canadian manufacturing profits $451,500 Canadian retail business income 50,000 Taxable capital gains(non-active) 4,500 Interest income: Canadian long-term bonds 40,000 Interest on overdue accounts receivable 5,000 Dividend income: From taxable Canadian corporations (eligible dividend) (RI owns less than 5% of the shares of these corporations) 9,000 From U.S. corporations (before U.S. tax of $1,800) (these corporations are not foreign affiliates) 12,000 Non capital losses from prior years applied in the calculation of taxable income 55,000 Net capital losses from prior years applied in the calculation of taxable income 4,500 Calculations correctly prepared under the Income Tax Act Taxable income $503,500 Part I tax payable (including additional refundable tax) 66,682 Foreign non-business tax credit 1,800 Miscellaneous Items Refundable dividend tax on hand as of December 31, 2018 (non-eligible) Dividend refund received in respect of the 2018 taxation year (non-eligible) Taxable dividends paid during 2019 (non-eligible) $22,000 9,000 99,000 Required: Determine, for RI Inc., by clearly presenting all component parts and their calculations, (a) the amount of the small business deduction, and (b) the amount of the dividend refund for 2019. Do not re-compute the Part I tax and the other related tax credits. Assume that they have been computed correctly
