The Canadian tax system practices integration between corporations and individuals. Using the data in the Table below and the assumed rates, illustrate and explain the concept of integration. (You will need to explain qualitatively and Quantitatively the concept)

Corporate income	$200,000
Non-eligible dividends paid to shareholder	174,000
Corporate tax rate	13%
Personal tax rate	50%
Marginal non-eligible dividend tax rate	43%

Part b

A corporation transferred land to one of its shareholders as a dividend in kind. The lands original cost is $25,000 and had a fair market value of $175,000 at the time of the transfer.

Required:

What are the implications on the corporation and the shareholder. Show your calculations

Part c

John sold 5000 of his shares back to ABC Co. for $25,000 during the current fiscal year. He purchased these shares from Julie three years ago for $15,000.Julie had originally purchased the shares from the corporate treasury for $10,000. Which of the following tax consequences will Tony recognize?