Question 1 Frank Ltd. is a CCPC with a calendar-based taxation year. The company's 2022 net income is $223,500 the component of which are as follows: Canadian Active Business Income (Note One) $183,450 Taxable Capital Gains 11,250 Foreign Business Income (Note Two) 28,800 2022 Net Income $223,500

Note One - This includes $146,700 of M&P profits, determined using the formula in the ITRs. As these amounts are allocated to a territory which has a special rate for M&P profits, the company is required to calculate the federal M&P deduction. Note Two - This amount is before foreign income tax of 10%.

Other Information Relevant to the 2022 Taxation Year: 1. In 2022, Frank Ltd. declares and pays taxable dividends of $46,000. It is the policy of the corporation to only designate dividends as eligible to the extent that they generate a dividend refund. 2. It is estimated that 88% of Frank's wages and 92% of Frank's gross sales relate to permanent establishments situated in a Canadian province or territory. 3. Frank Ltd. is associated with one company. Frank's share of the annual business limit is $110,000. 4. On January 1, 2022, there was no balance in either of Frank's RDTOH accounts. On December 31, 2021 the Company's GRIP account balance was nil. 5. In 2021, the Adjusted Aggregate Investment Income (AAII) of Frank and its associated company is $27,350 and the combined Taxable Capital Employed In Canada (TCEC) is $950,000. 6. Frank has a 2019 net capital loss balance of $5,250 which it intends to claim in 2022 to the maximum extent possible. 7. Assume that the foreign tax credit on foreign business income is equal to the foreign income tax.

Required: Show all of the calculations used to provide the required information, including those for which the result is nil. Calculate the following amounts for Frank: A. 2022 Part I Income Tax. B. 2022 refundable portion of Part I tax. C. 2022 Part IV Tax. D. GRIP account balance on December 31, 2022. E. Eligible and Non-eligible RDTOH balances on December 31, 2022. F. 2022 dividend refund, showing separately refunds related to eligible and non-eligible dividends.