Question 2 (24 marks) Ms. Barbra Strickland is the only shareholder of Strickland Ltd., a Canadian controlled private corporation. The Company has a December 31 year end and, at December 31, 2020, Ms. Strickland determines that the Taxable income of the Company for the year will be $24,200. The Company has this amount available in cash, prior to the payment of taxes, dividends, or salary All of the Company's income qualifies as active business income and any dividends that it pays will be non-eligible. The Company's activities are confined to a province in which the applicable corporate rate of taxation is 3 percent on income eligible for the small business deduction. The province does not levy a payroll tax. Ms. Strickland has no other source of income. In her tax bracket, the combined federal/provincial tax rate for individuals is 25 percent. For non-eligible dividends, the provincial dividend tax credit has been set at 30 percent of the dividend gross up. Ms. Strickland has combined personal tax credits for the 2020 taxation year in the amount of $3,423. Required: A. Determine the after-tax amount of cash that Ms. Strickland will retain if all of the Company's income is paid to her in the form of salary. Ignore CPP contributions and the Canada employment tax credit. B. Determine the after-tax amount of cash that Ms. Strickland will retain if the Company pays the maximum possible dividend. C. Can Ms. Strickland improve her after tax cash retention by using a combination of salary and dividends? Explain your conclusion D. Determine the combination of salary and/or dividends that will produce the maximum after tax cash retention for Ms. Strickland. Calculate the amount of this after-tax cash retention. Hint: Assume a salary of $1,000 & a corresponding decrease in dividends as a starting point in calculations. E. Briefly describe any other factors that Ms. Strickland should consider in deciding whether to pay herself dividends or alternatively, salary