Question 2 Kinsmore Industries Ltd. is a CCPC. There are no associated corporations. The company manufactures small tools and also handles some of its own retail distribution. As all profits are earned in a province that does not have a special tax rate for manufacturing, the company does not bother with the M&P deduction. The following aggregate income statement has been prepared to assist you in completing Kinsmore's income tax return for the 2021 taxation year ending December 31: Revenues from Operations $6,300,000 Expenses from Operations (5,640,000) Income from Operations $660,000 Canadian Source Interest Income 55,000 Eligible Dividends from Portfolio Investments 48,000 Accounting Income before Income Tax $763,000 All of the revenues of Kinsmore are earned in Canada in 2021 The expenses are all deductible for income tax purposes except for amortization expense of $1,250,000. Your calculations indicate that maximum CCA would be $1,350,000 and the company intends to claim this amount. Other Information: 1. In 2021, a total of $97,000 in taxable dividends were paid to the shareholders of Kinsmore Industries. It is the policy of the company to maximize the designation of eligible dividends, without regard to the availability of a refund on their payment. 2. On January 1, 2021, the balance in both the Eligible and Non-Eligible RDTOH was nil. 3. At the beginning of 32021, Kinsmore has a GRIP balance of $42,500. In 2020, the company designated $31,300 of its taxable dividends paid as eligible. 4. In 2020, Kinsmore's AAll was $23,000 and its taxable capital employed in Canada was $1,600,000. Required: A. Calculate Kinsmore's minimum 2021 Net and Taxable income. B. Calculate Kinsmore's minimum 2021 Part I Income Tax Payable. C. Calculate Kinsmore's refundable portion of Part I Tax for 2021. D Calculate Kinsmore's 2021 Part IV Tax Payable. E. Calculate Kinsmore's Eligible and Non-eligible RDTOH at December 31, 2021. F. Determine the December 31, 2021 GRIP balance. G. Determine the amount of Kinsmore Industries Ltd.'s dividend refund for 2021, showing separately the amounts related to eligible and non-eligible dividends. Question 2 Kinsmore Industries Ltd. is a CCPC. There are no associated corporations. The company manufactures small tools and also handles some of its own retail distribution. As all profits are earned in a province that does not have a special tax rate for manufacturing, the company does not bother with the M&P deduction. The following aggregate income statement has been prepared to assist you in completing Kinsmore's income tax return for the 2021 taxation year ending December 31: Revenues from Operations $6,300,000 Expenses from Operations (5,640,000) Income from Operations $660,000 Canadian Source Interest Income 55,000 Eligible Dividends from Portfolio Investments 48,000 Accounting Income before Income Tax $763,000 All of the revenues of Kinsmore are earned in Canada in 2021 The expenses are all deductible for income tax purposes except for amortization expense of $1,250,000. Your calculations indicate that maximum CCA would be $1,350,000 and the company intends to claim this amount. Other Information: 1. In 2021, a total of $97,000 in taxable dividends were paid to the shareholders of Kinsmore Industries. It is the policy of the company to maximize the designation of eligible dividends, without regard to the availability of a refund on their payment. 2. On January 1, 2021, the balance in both the Eligible and Non-Eligible RDTOH was nil. 3. At the beginning of 32021, Kinsmore has a GRIP balance of $42,500. In 2020, the company designated $31,300 of its taxable dividends paid as eligible. 4. In 2020, Kinsmore's AAll was $23,000 and its taxable capital employed in Canada was $1,600,000. Required: A. Calculate Kinsmore's minimum 2021 Net and Taxable income. B. Calculate Kinsmore's minimum 2021 Part I Income Tax Payable. C. Calculate Kinsmore's refundable portion of Part I Tax for 2021. D Calculate Kinsmore's 2021 Part IV Tax Payable. E. Calculate Kinsmore's Eligible and Non-eligible RDTOH at December 31, 2021. F. Determine the December 31, 2021 GRIP balance. G. Determine the amount of Kinsmore Industries Ltd.'s dividend refund for 2021, showing separately the amounts related to eligible and non-eligible dividends