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Rehan Inc. is a CCPC. The accountant has correctly determined net income for tax purposes to be $652,000 for the year ended December 31, 2019.

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Rehan Inc. is a CCPC. The accountant has correctly determined net income for tax purposes to be $652,000 for the year ended December 31, 2019. The following additional information is available: Non-capital loss carryforward $40,000 Eligible portfolio dividends 25,000 Interest income (Canadian) on long-term investments 10,000 Accounting gain on disposal of assets 65,000 Taxable capital gain on disposal of assets Non-eligible refundable dividend tax on hand (NERDTOH) balance, end of preceding year 2,500 2,000 50,000 Eligible refundable dividend tax on hand (ERDTOH) balance, end of preceding year Prior-year dividend refund from non-eligible dividend payment Dividend from wholly owned subsidiary Dividend refund received by the wholly owned subsidiary from its NERDTOH account Share of annual business limit used by wholly owned subsidiary Non-eligible dividend paid to shareholders during year 4,000 200,000 60,000 Required: For the 2019 taxation year: a) Determine the taxable income for Rehan. (1.5 marks) b) Determine the active business income for Rehan. (1.5 marks) c) Determine the aggregate investment income for Rehan. (1 mark) d) Determine the adjusted aggregate investment income for Rehan. Will this have any effect on the small business deduction calculation in 2020? (2.5 marks) e) Calculate Part I federal tax payable for Rehan. (6 marks) f) Calculate Part IV tax payable for Rehan. (1 mark) g) Calculate the refundable portion of Part I tax, the balance in NERDTOH, the balance in ERDTOH, and the eligible, non-eligible, and total dividend refund for Rehan. (10 marks) h) Summarize the total taxes payable by Rehan. (1.5 marks) Note: Round all amounts to the nearest dollar and ignore GST and provincial taxes. Show the full detail of all steps in your calculations, even if the result is zero

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